The problem is a lot of disruptive businesses initially looked "completely ridiculous from the start".
VCs are not idiots, they are probably much more humble than what ordinary people think they are, because any active VC--especially if they're successful--would have run into at least several cases where they passed on a company because they "looked stupid", just to find out that they went on to become wildly successful.
Once you go through this routine several times, you generally learn to appreciate and not immediately discount seemingly stupid ideas. This happens not just to VCs but overall if you live in Silicon Valley.
Since ideas alone aren't enough, the only good measure in my experience is looking at the person who's working on it. And here lies a lot of mistakes VCs make, they just look at some guy who was successful in the past and just think it's safe to bet on them.
To be clear, I also think Juicero was a stupid idea, and I think it was stupid of them to waste so much money upfront instead of starting scrappy, but my point is that there is no such thing as an "absolutely stupid idea". Ideas are contextual.
VCs are not idiots, they are probably much more humble than what ordinary people think they are, because any active VC--especially if they're successful--would have run into at least several cases where they passed on a company because they "looked stupid", just to find out that they went on to become wildly successful.
Once you go through this routine several times, you generally learn to appreciate and not immediately discount seemingly stupid ideas. This happens not just to VCs but overall if you live in Silicon Valley.
Since ideas alone aren't enough, the only good measure in my experience is looking at the person who's working on it. And here lies a lot of mistakes VCs make, they just look at some guy who was successful in the past and just think it's safe to bet on them.
To be clear, I also think Juicero was a stupid idea, and I think it was stupid of them to waste so much money upfront instead of starting scrappy, but my point is that there is no such thing as an "absolutely stupid idea". Ideas are contextual.