How has technology changed which deals venture capitalists (VCs) fund and how they fund them?
Venture capitalists essentially invest in startup ‘experiments’, and subsequently provide more funding to the experiments that work, so that they can run more experiments. This leads to many failures (roughly 55% of startups) and a few successes (6% return > 5x the total amount invested). So an innovation that changes the cost of experiments changes the landscape for venture funding.
