Scary Signs

February 25, 2011

Seems that all the big financial institutions are waking up to all money being made in what formally startup tech. Now that the big money is pouring in and fighting for allocation we can’t be too far away from some dashed dreams.

Amazingly dumb business model to invest money in a great idea that has gone from 0 value to 50 billion in less than ten years. Smart model is to find great ideas when they are worth close zero. At 50 the beat case is a 4 or 5 x return. At 0 the upside is nearly unlimited.

Roots for the USVs and root against the GSs.

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