> A VC, on the other hand, is often content to have zero returns for years followed by a 100x payout through an IPO
I know how all this works, but 100x payout is for the small initial investments, not after 10 years of operating at multi-billion-dollar scales.
Small amounts of money are set on fire all of the time, chasing this kind of high-risk return.
Nonetheless, there's an expectation of a return, even if only in aggregate across many small startups.
What I was observing (from the outside, at a distance) was that Twitter was still being run by a startup despite being in an effectively monopoly position already and a "mature" company. Similarly, Amazon could set money on fire while they were the growing underdog. If they doubled their headcount today without doubling either revenue or profits, the idiots responsible for that would be summarily fired.
I get that Silicon Valley and their startup culture does a few things in an unusual way, but that doesn't make US dollars not be US dollars and magically turn into monopoly money that rains from the sky just because interest rates are low.
I know how all this works, but 100x payout is for the small initial investments, not after 10 years of operating at multi-billion-dollar scales.
Small amounts of money are set on fire all of the time, chasing this kind of high-risk return.
Nonetheless, there's an expectation of a return, even if only in aggregate across many small startups.
What I was observing (from the outside, at a distance) was that Twitter was still being run by a startup despite being in an effectively monopoly position already and a "mature" company. Similarly, Amazon could set money on fire while they were the growing underdog. If they doubled their headcount today without doubling either revenue or profits, the idiots responsible for that would be summarily fired.
I get that Silicon Valley and their startup culture does a few things in an unusual way, but that doesn't make US dollars not be US dollars and magically turn into monopoly money that rains from the sky just because interest rates are low.