Ask HN: Is Venture Capital becoming Vegas-style gambling machine?
I was reading various stories on Softbank's poor performance for the last five years. It is back to zero in providing returns for its Vision fund. Other late stage funds are undergoing a similar fate where money poured. Without any checks.
There are other stories of how founders have schemed the investors. Raised at 100X revenue valuations. Spent millions of dollars. Without a product to show. Without customer traction.
I'm an idealist. Venture Capital is a greater good. It democratizes access to capital to people who otherwise did not inherit. But nervous that this tulip mania like cycle hurts more than helps.
Are people just playing roulette? Is high-tech no longer tech? But just high on the kool-aid of unabashed flow of money?
There are other stories of how founders have schemed the investors. Raised at 100X revenue valuations. Spent millions of dollars. Without a product to show. Without customer traction.
I'm an idealist. Venture Capital is a greater good. It democratizes access to capital to people who otherwise did not inherit. But nervous that this tulip mania like cycle hurts more than helps.
Are people just playing roulette? Is high-tech no longer tech? But just high on the kool-aid of unabashed flow of money?