[muttantt]

It's really simple, this is VC pyramid scheme at play. Say you put $100M into a company at $1B valuation. A year later you put $250M at a $3.25B valuation. Your $350M is now valued at made up $580M. When the company later sells for just double, $7B, your $350M became $1.2B.

[lotsofpulp]

> When the company later sells for just double, $7B, your $350M became $1.2B.

“If”, not “when”.

[riku_iki]

They may have clear path to "when", since they invest. For example, I see some transactions where smaller company is acquired by larger company, and it looks like both companies have the same core investors who guide through this route.

[ilrwbwrkhv]

Yup this is really it. For the last decade VCs have played this horrible pyramid scheme. It is bad for the whole country and the economy.