> This is a misunderstanding of VC investment. Any competent VC expects most of ... | Hacker News

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		flowerthoughts 7 months ago \| parent \| context \| favorite \| on: Builder.ai Collapses: $1.5B 'AI' Startup Exposed a... > This is a misunderstanding of VC investment. Any competent VC expects most of their investments to go to zero. I'll be doing a linguistic nit pick now, as I felt it was a bit harsh to label my statement as a misunderstanding. The bet is still on each investment to have a good exit. With the implied assumption that betting is a probabilistic game.

MegaButts 7 months ago [–]

No, this is wrong. VCs regularly bet on companies they expect to fail, and occassionally even know will fail. They sometimes put money into companies knowing they will never get it back. They do not expect a positive return on every investment.

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