Re:Uber is laying off 3,700, as rides plummet due to Covid-19
by mulmen on Wednesday May 06, 2020 @02:38PM
(#23094694)
Isn’t this textbook survivorship bias? Dozens of successes out of how many failures and how much misallocated capital?
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Re:Uber is laying off 3,700, as rides plummet due to Covid-19
by samatman on Wednesday May 06, 2020 @03:59PM
(#23095595)
Well, no, because for each VC portfolio, it's either profitable off the survivors, or it isn't.
The point is that from the perspective of investors, the survival of an individual startup is an irrelevant metric. What they're interested in is the profitability of the whole portfolio.
And so far, a 90% failure rate with <5% wild success is a profitable formula. As long as that remains true, they have no reason to change it.