> The real question is: Will Elizabeth serve the purpose of your fund — or by investing in her, will you simply be serving her purpose of writing her rise-from-the-ashes narrative?
I think pretty clearly there are VCs who are quite cognizant that their main advantage is their marketing, and making a big splashy controversial investment serves that marketing well. A16Z don't give a damn if they throw 50m at a bad investment, that's not how the game works- they already know most of their 50m investments will fail, so if that investment can keep their name out there so they get access to the funding rounds of the ones that succeed? It's worth it.
I think pretty clearly there are VCs who are quite cognizant that their main advantage is their marketing, and making a big splashy controversial investment serves that marketing well. A16Z don't give a damn if they throw 50m at a bad investment, that's not how the game works- they already know most of their 50m investments will fail, so if that investment can keep their name out there so they get access to the funding rounds of the ones that succeed? It's worth it.