1. 2

In which DHH channels our own MOC.

  1. 1

    The true puppeteer behind this homogenization of startup aspirations is diversification theory. Decisions are not driven by what’s good for a single company, its employees, and its customers. No, it’s what’s good for the basket.

    These baskets are known as venture capital funds. That’s the pipeline through which virtually all recent tech companies that have reached the public markets were sent. It’s a gladiatorial arena with the explicit goal that if enough businesses in the basket aren’t failing, the fund isn’t trying hard enough! Not dreaming big enough! Be more outrageous! Be more crazy!

    It’s a hyper-evolutionary process that rewards the most extractive, most addictive, most viral strain from the cohort. The key measurement is ENGAGEMENT. Who cares about the virtue of the endeavor, as long as your product is maximally addictive.

    A really key point that, which I think he could have made more succinct.

    ie. A collection of startups, each with a low probability of success, has, on average a low or negative return.

    However, if one of the eggs in the basket hatches exponential growth, you break out of the harsh constraints of the central limit theorem… and get exponential returns.

    So the VC’s really don’t give a shit about anything that doesn’t ultimately go viral.

    1. 1

      I appreciate this view that slow and steady wins the race. But this rant was quite long without much substance, IMO. Just a bunch of assertions and cultural references. If you’re anti-Valley then you’ll like it. If not, it’s easy to swipe left.