Thursday, February 07, 2008

Craving the High That Risky Trading Can Bring - New York Times

Craving the High That Risky Trading Can Bring - New York Times: "“The more you think you can gain from the risk, the more you take the risk and the more activation in the circuitry,” Mr. Knutson said."

In my opinion, this "high" really defines the VC culture in Silicon Valley. Pitching to a VC is less about pitching a stable business model and much more about tapping into that desire to take the big risk and reap the big gain. The crazier your idea, the riskier it is, the more money you want, the more prestigious the team, the more you can amp up the valuation and amp down the percentage. The desire to invest in the more espensive, riskiest startup is akin to the desire to buy a $1M Bugatti Veyron. A beautiful thing for the entrepreneur.

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