September 28th, 2007 by Rob
If ever there was a time to stick something up here, this is the time. For whatever reason, the investment community has once again deemed interactive entertainment to be worthwhile. Nobody is happier than me that the Venture Capitalists have once focused their financial largess on this particular segment of industy.
I don’t wish to give the impression that I don’t respect VCs. Some of the smartest people I’ve met have been Venture Capitalists. WIcked smart, like Chamath Palihapitiya, formerly at Mayfield, now actually VP prod marketing at Facebook. Chamath is the kind of smart that like when you first meet him, it’s painful how much smarter he is then you. I’ve pretty much learned the ‘rule of smarts’ and it goes like this.
The Rule Of Smarts: If you meet somebody, and you are not sure if you are smarter than they are, that means they are smarter than you are.
Chamtath is one of those.
What I don’t fully understand, is that it’s also the case that some of the most truly clueless people I have met were also Venture Capitalists. Like seriously, is anybody home, hello? It totally befuddles me that some of these people get these jobs.
Besides being hit or miss smart, it’s been my experience that the same time that Venture Capitalists have backed some of the silliest enterprises the world has ever seen, they also occur to me as incredibly risk adverse. I mean, pretend that you are playing no limit holdem for real money, and you look down and pick up this hand.
But you don’t have enough chips … just then a Venture Capitalist wanders by .. here is the conversation
YOU “check it out, pocket rockets, can you help me”?
VC hmmmm, isn’t it rather early in the hand to guarantee that you will win ?
YOU “well, we have to sweat the flop, turn, and river, sure .. but we are big favorites, for sure”
VC lets see the flop first