Table of Contents
The Journey of some modern VCs becoming dumb and stupid
1. In 1958, the Rockefeller family, sitting over tons of money but not the ability to build the next new thing, started hunting for the next Rockefeller.
2. Robert Noyce caught the eyes of the early VCs after he left Shockley and got the funding to form Fairchild Semiconductor, which became Intel.
3. Back then, private funding was capped at $60k. But the fact that you could quit a corporation and there are backers led many to leave industries and smart building technologies.
4. Who were they? Physicists, mathematicians, the top brains. And now the brains kept getting funding and VC as the industry grew.
5. The principle was “find the most brilliant minds, and fund them early, let the scientists work on technologies for at least ten years. Science follows a power law, not a bell-curve normal distribution.
6. Who were they? Men with a hard life, suffering by worldwar, immense stress handling ability with science.
7. Google was not funded to make search software. It built googleware, which enabled the company to connect cheap scrapped hardware into a network to form the server.
8. There were plenty of college kids, the spoiled brats whose fathers had earned a lot of money, so they had excess money to hang out digitally and spend.
9. Zuck’s success brought back the Rockerfeller orgasm, and youngsters were funded.
10. None of them were the world’s top brains, and none had to build a technology beyond some silly software.
11. So, below 24, names that VCs worship, like Nikola, Edison(Therano’s silly device), and “Future Exchange”(no SEBI, ok?), got silly funding.
12. All of the so-called startups targetted this young group, the lazy, weak, “educated by father’s money”, anxious, pleasure-driven generation.
13. So what if we don’t have a Woz who built apple II singlehandedly, then throw 10,000-degree engineers, and they will do what Woz did?
14. Law of money is the brain creates wealth, and wealth is translated into money. Money doesn’t create money, wealth, or a brain. So by law, the more money you put in, the dumber it attracts.
15. Law of dumbness: 10k dumbs+ 10k dumbs≠1 Top Brain, but 20L dumbs.
16. So once VCs funded Woz and Noyce, they started funding Elizabeth Holmes and Shakylegs Bankmans.
17. Most new-gen self-proclaimed VCs have neither dedicated their life to science nor technological commercialization of the science into a venture and are “Havard” branded and Silly-analysis(made by other dumbs) powered keyword trained.
18. “Fund allocators”(FA), not VC. Whose fund? Common people’s. Ex: a VC fanned $100 Million teacher’s pension fund into half-pant Bankman.
Why chasing VC money may kill your startup?
If dumbs with money could change the world, then monkeys with razors would have been running barber shops.
By the way, I propose this revolutionary, disruptive, world-changing idea of the Monkey-Razor Barbar Chain. Let’s call it MRBC the crypto way.
So, just because you are being taken to the top of the Bell curve, which appears big and flat, like flat-earth brains, doesn’t mean that money won’t follow a normal distribution. And just because FAs don’t know that a normal distribution can’t be mathematically altered into a power law doesn’t mean there will be a power law.
Common hardworking people, saving their entire life’s savings without speculations into banks, pension funds, and insurance, are then given to dumb FAs. Give money to your life partner, and she will take better care of the money because she will identify the dishonesty of a shaky-leg half-pant.
Females will then make cooperatives, do small businesses, and create more wealth, unlike the silly dishonest banking sector, whose sole business is lending and giving common people’s money to other dumbs to play Casino with the hope of winning a lottery.
If you want to prepare for the coming economic mess, stop putting money into wallets and banks and taking insurance and pension policies. And if you want to run a real startup, read the history of Silicon valley. By calling “Finance Technology” Fintech, dumbness doesn’t become smartness.
Some of the reader’s thoughts and discussions on toxicity of the VC money
I was listening to an interesting commentary yesterday on FTX where the commentator was discussing how “money” has gotten wholly decoupled from “value”. Earlier, we understood that if we pay x, we get 1kg of wheat, rice, or something. Now, valuations are being created out of thin air and mere FOMO is enough to generate “multiples”. Imagine if all companies stopped bothering with creating physical goods and jumped into generating money from money business 🙏
Arnab Mitra
One has to understand the philosophy of something to understand how the systems work. Bitcoin by Satoshi was an idea of decentralization of value.
There is a problem with this ideology. 95% of the human population is stupid. Stupidity is a spectrum; we all have stupidity, yet a majority is a higher end. So decentralization assumes that all are equal(like banking or any other centralization). Centralization still has hierarchies, and the top is always wise.
So, philosophically, crypto says, “trust all the stupids(because 95% of the systems are theirs,” and on top of that, the Crypto change says, “Trust one of the stupids, who is smart.”
Producers never ask for money to give to others to make something. Producers ask for money to make something(crops, buildings, movies).
Trading is also production-linked. For example, I trade the stocks of vials, syringes, and chemicals in Stress medicine to build a network and understand the logistics of the raw and finished materials and not make money. That trade enables me to know what the market is preparing for. I can then produce that and sell it. In that way, my stock reserves are less.
By tracking the core BOM of ECG products and trading the companies who manufacture them, when there is increased demand, I buy the stocks, which gives me immunity against those companies closing down on which our core business is dependent. Trading is always production-linked.
So, what did the shaky leg half pant and his moron friends produce better than anyone else? Nothing. And so when such morons start an exchange, it is not declared to what productivity the exchange is linked. So by def, it is stupidity.
Many top VCs have invested in this stupidity. Who invests in a stupid? Another stupid, one who doesn’t identify the stupid. So are we to call Samundar-Kiya Venture smarts?
One principal sums it up in point 5 – “find the most brilliant minds, fund them early” which has now changed to “find the VC, take the funds early”. Money chasing talent vs “talent (supposedly) chasing money” will always have different results – former produces stars, latter produces monkeys. Barber shop with monkeys is a great idea though, monkeys are good at repeatedly doing the same thing endlessly
Ashwani Basantani
Unfortunately, top brains like Noyce, Woz, or earlier Vincci and Tesla, follow the anomaly law, i.e., they are millions of miles away from the crowd.
That is why, when you deploy software, which starts with filtering, the anomalies, which are the actual data, get eliminated. What remains is the crowd. A simple theory is if one is in the crowd, one won’t pay attention to anomalies. So these brains, which are 10000x superiors, are far few and can only see each other.
Paul Grham was an exceptional developer. But in his entire life, he couldn’t get another ten talents to take his work to the next level; he sold the technology nonetheless. So, Twitter, Facebook, and alike websites were created with billions of dollars of valuation. Most top professors were already taken away by the VCs of previous generations, so colleges now have teachers like Mother-Bankman.
This circus would have been such entertaining if the dumb FAs or MRBCs, whatever you want to call them, did not end up siphoning unsuspecting common people’s money into other lazy-greedy brains. Other than this, the rest of the circus is great, like watching Wonderful of Tank whining and blabbering after the half-pant sleazy dream of his end.
