David Friedberg says mega-VCs push startups to risk failure for 100x returns.
David Friedberg · E58: November's CPI, preparing for a downturn, macro outlook, Better.com's botched layoffs & more · Dec 11, 2021 · at 1:05:39
David Friedberg, CEO of The Production Board, analyzes how power-law venture returns align investor incentives against individual startup survival.
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“For their portfolio as a whole, they would rather tell everyone, go hard, go fast, spend as much money as you can, and they hope that one out of 10 companies becomes a hundred X from there. And it's okay if nine out of 10 die. So they don't care if you die. They care if one out of 10 companies goes a hundred X.”
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