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What the wise man does in the beginning, the fool does in the end.
Internet 1.0 bought in some of the current giants/well knowns like Alphabet, Amazon, Ebay, Paypal, Youtube etc. Internet 2.0 bought in Facebook, Twitter and co for the social sharing economy. Internet 3.0 currently has a few winners from the sharing economy like Uber or Airbnb. It's hard for the money not to go crazy under these circumstances. If i were one, i probably will be crazy as well.
That said, if all these is viewed from venture capital's standpoint, it is not exactly crazy in some sense as well. Equity investing of listed companies generally try to reduce Type1 errors (ie. investing in a dud) to improve performance. But for venture capital, they have to reduce type2 errors (not investing in a home run). So while the former tries to avoid losing so as to win, the latter tries to avoid the error of omission.
No one wants to have the future feeling of regret of missing out on the real deal if the chance once presented itself but they didn't hold onto it. It would haunt for the rest of their life.
Internet 1.0 bought in some of the current giants/well knowns like Alphabet, Amazon, Ebay, Paypal, Youtube etc. Internet 2.0 bought in Facebook, Twitter and co for the social sharing economy. Internet 3.0 currently has a few winners from the sharing economy like Uber or Airbnb. It's hard for the money not to go crazy under these circumstances. If i were one, i probably will be crazy as well.
That said, if all these is viewed from venture capital's standpoint, it is not exactly crazy in some sense as well. Equity investing of listed companies generally try to reduce Type1 errors (ie. investing in a dud) to improve performance. But for venture capital, they have to reduce type2 errors (not investing in a home run). So while the former tries to avoid losing so as to win, the latter tries to avoid the error of omission.
No one wants to have the future feeling of regret of missing out on the real deal if the chance once presented itself but they didn't hold onto it. It would haunt for the rest of their life.