> when VCs were funding all kinds of ride share, bike share, food delivery, cannabis delivery, and burning money so everyone gets subsidized stuff while the market figures out wtf is going on
I’m reminded of slime molds solving mazes [1]. In essence, VC allows entrepreneurs to explore the solution space aggressively. Once solutions are found, resources are trimmed.
VC is good for high-risk, capital-intensive, scalable bets. The high risk and scalability cancel out, thereby leaving the core of finance: lending to enable economics of scale.
Plenty of entrepreneurship is low to moderate risk, bootstrappable and/or unscalable. That describes where VC is a raw deal. It also does not describe AI.
I’m reminded of slime molds solving mazes [1]. In essence, VC allows entrepreneurs to explore the solution space aggressively. Once solutions are found, resources are trimmed.
[1] https://www.mbl.edu/news/how-can-slime-mold-solve-maze-physi...