RE: Venture Capitalism: Making The Wealthy Even Wealtheir
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The way you put it looks like VCs are perfectly aware of the two sides of the sword. I see such risk management quite similar to investing in low cap coins. High risk high reward.
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They understand the situation very well. They tend to have a breakdown where they know they are going to lose all their money on half the deals. On 3 out of 10 they might break even and one or two make a profit.
It is the one of the two that they are seeking to cover the rest. They money in a Coinbase makes up for a lot.
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