Fabio Manganiello on Nostr: I think that venture capitalists are well aware of the risks. Talking to some in the ...

I think that venture capitalists are well aware of the risks. Talking to some in the field, I managed to extract two axioms that are probably foundational to the whole “profession”:<li><p>All bubbles are going to burst eventually - smart investors simply know when it’s the right moment to jump off the boat before it crashes against the rocks, and the luckiest ones of those are those who will manage to rip off the highest ROI even if none of their investments eventually was fruitful.</p></li><li><p>It doesn’t matter if 95% of your invested money eventually turned out to go burst, as long as there’s a 5% that was invested in what will eventually become a market leader and make up for all the other losses.</p></li>

In a nutshell, VCs may also get hurt, but they are always the least likely to get hurt in the process.