Dixon: Liquidity is a bug, not a feature in venture capital
Chris Dixon · Chris Dixon – The Future of Blockchain at a16z (Capital Allocators, EP.172) · Jan 11, 2021 · at 1:06:33
Andreessen Horowitz GP Chris Dixon explains why illiquidity protects venture capital investors from panic-selling volatile winning investments during severe market swings.
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“I believe that in my business, at least liquidity is a bug and not a feature. And what I mean by that is the ability to sell something is a very, very dangerous thing and can mess with you. And I bet you that if most venture capitalists could sell their stock along the way would have far lower returns because The reality of any successful venture is that it's a roller coaster and the reaction of people on that roller coaster tend to be magnified the, even the already kind of significant ups and downs. And as a result, people freak out and try to bail out of things.”
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