> Why did the VCs value these as billion dollar companies? Desperation?
1. FOMO
2. Easy Access to Capital in last decade
3. Winner takes it all culture, which causes more FOMO
But then as a VC you also have to bet future with incomplete set of data... which is not truly a science... though there are some Midas in VC... reality/statistics is only 3-5% of all investment will hit home run, 5-15% will do average and other will just fail... we would not have many of the company/services around if someone would not have taken those bets (from UBER to AirBnB and others...)
1. FOMO
2. Easy Access to Capital in last decade
3. Winner takes it all culture, which causes more FOMO
But then as a VC you also have to bet future with incomplete set of data... which is not truly a science... though there are some Midas in VC... reality/statistics is only 3-5% of all investment will hit home run, 5-15% will do average and other will just fail... we would not have many of the company/services around if someone would not have taken those bets (from UBER to AirBnB and others...)