Chamath from Social+Capital on why startups are mostly crap

(Andrew Chen) #1

The money quote:
“The reality is, great companies can go public in any market. When we talk about the I.P.O. slowdowns what we’re really saying is that there really just aren’t that many good companies being built. We need to divorce ourselves from venture capital as an occupation and focus on using capital as a way to take really big bets on things that just seem totally audacious. Right now we haven’t done enough of that, and the result is that most of the things we’ve funded are mostly crap and largely worthless.”

(Ace) #2

Hello @andrewchen.

We will find a greater degree of innovation and more risk taking, if we sought not to stick so rigidly to the problem-solution paradigm. Granted certain innovation, certainly from those putting the dollars in, can be seen as justified when it addresses a problem, but it’s a framework that denies us as sentient beings our ability to think beyond what we are mired in. Innovation that seeks to take us to a new plane of thought, of being, of living, is not permitted to exist at times if at all, in this framework.

If Sir Isaac Newton had problem-solution innovation as the framework to abide by, then his response would have been to build a hard-hat.

Cheers, Ace.