Great reminder that all the 'smart money' in the world is just driven by individuals hiding behind big institutions, and these individuals are still human - hence the Keynesian beauty contest.
There's so much in this post that I feel compelled to comment but I'm not sure what to comment on.
I'll pick the tech and capital burn part: I think previous manias, not tulips, but railways, internet, etc. Have shown that excessive capital and the wave of fraud that comes with it go hand in hand with period of rapid improvement. This brings a question about regulation and its pace (without definite answer).
This is how the housing market works to an extent. You buy a house, renovate and improve, live in it and then hope to make a profit. LBOs are often compared to a house mortgage for that exact reason. Value is perception - bottle of water at your local CVS vs. airport costs a very different amount.
very interesting post to give me another points of view to look at VC( also bag holders from long-term business model researchers) and how the capital value chain impacts innovation (big wave of capital might also accelerate the improvement).
This one is really insightful.
• Capital Dependency: A company's "terminal value" can look great for early investors, while being dependent on later investors
• What's It Worth: The success of an early investor's return is determined based on what a later stage investor decides the company is worth
Memo to myself: https://share.glasp.co/kei/?p=9YyA01aTNBxJudjNObtc
Great reminder that all the 'smart money' in the world is just driven by individuals hiding behind big institutions, and these individuals are still human - hence the Keynesian beauty contest.
There's so much in this post that I feel compelled to comment but I'm not sure what to comment on.
I'll pick the tech and capital burn part: I think previous manias, not tulips, but railways, internet, etc. Have shown that excessive capital and the wave of fraud that comes with it go hand in hand with period of rapid improvement. This brings a question about regulation and its pace (without definite answer).
This is how the housing market works to an extent. You buy a house, renovate and improve, live in it and then hope to make a profit. LBOs are often compared to a house mortgage for that exact reason. Value is perception - bottle of water at your local CVS vs. airport costs a very different amount.
very interesting post to give me another points of view to look at VC( also bag holders from long-term business model researchers) and how the capital value chain impacts innovation (big wave of capital might also accelerate the improvement).