Before you pat yourself on the back for being so smart and grounded...

Remember, every technology you use today followed this pattern, with winners emerging that absolutely did go on to be extremely profitable for decades.

Most of us remember the .com era. But in the early 1900s there was literally hundreds of automotive startups (actual car companies, and tens of thousands of supplier startups) in the metro-detroit area: https://en.wikipedia.org/wiki/List_of_defunct_automobile_man...

Some of these went on to be absolutely fantastic investments, most didn't. All VCs and people who invest in venture know this pattern.

Everybody involved knows exactly the high risk level of the bets they are making. This is not "dumb" money detached from reality, and the pension funds with a 3% allocation to venture are going to be just fine if all these companies implode, this is just uncorrelated diversification for them. The point of these VC funds is to lose most of the time and win big very rarely.

There will be crashes, and more bubbles in the future. Humans will human. Everything is fine.

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fullshark 3 days ago | parent | next [-]

And they also realize they don't need to be fantastic investments to pay off, they just need to IPO/be acquired at a higher share price.

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delfinom 3 days ago | parent [-]

RIP our 401ks that will end up being the bagholders when its dumped on the market.

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pembrook 3 days ago | parent [-]

Your 401k is going to be fine, nobody goes public anymore until they're a big, dumb, boring, profitable company and all of the risk+returns have been rung out.

Too many normies betting their life savings without understanding this risk in prior bubbles, so we regulated away the ability for non-institutional investors to take venture risk at all.

	▲	otterley 3 days ago \| parent [-]
		> we regulated away the ability for non-institutional investors to take venture risk at all. Some institutions try to achieve this by launching their own cryptocurrencies, but by and large, the market isn't biting.

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utyop22 2 days ago | parent | prev | next [-]

"The point of these VC funds is to lose most of the time and win big very rarely."

Sure, but in my view, I think we are on the downtrend now and this line of thinking has been taken way too far.

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113 3 days ago | parent | prev | next [-]

Did you respond to the wrong comment?

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jstoppa 2 days ago | parent | prev [-]

I agree, just another cycle