venture capital is a strange ecosystem of very smart boys with too much money looking for very smart ideas to turn that money into huge piles of money. so everyone involved has an incentive to sell themselves as the smartest of the very smart boys with the smartest of the very smart ideas such as “selling toilet paper with a subscription”, and to remind their audience that only the extra special smart boys can recognize the extra special smart ideas and get in big on the ground floor. so it’s a giant fart-huffing apparatus, a hall of mirrors that entices people with constant validation of their intelligence if they’re willing to drop large amounts of cash on the promise of extravagant returns.

this is the most efficient way of distributing capital for increasing production.

I know only one person who engaged in startups. Two of them failed and one still exists though I am sure it is not profitable. He has a bachelors in business and has marinated himself thoroughly in liberal capitalist kool aid so he probably thought he knew how money is made. He wanted to make products rather than invest because he wanted to be like one of those local iNnOvAtIVe CEOs that are often published about in the newspaper. Some ppl just wanna be the glorious risk takers I suppose.

Everyone thinks they know better and investor money has to go somewhere for taxation purposes.

As an aside, S&P500 index is the only investment worth making for USAmericans who aren’t in congress.

The point of business is the process of putting others people money into your pocket, ideally you provide an use-value, but nowadays most startups end game is to “dump” their “idea” to a dumbass investor.