> The first, and most obvious, answer, is that failure has become inexpensive.
> "failure is almost synonymous with learning experience"
> not punishing failure leads to stronger long-term growth.
> funds are leveraged with the expectation of failure; failure is baked into VC firms' business models. Start-ups are encouraged to swing for the fences, because one or two big exits in a cycle will guarantee profitability for a firm.
> Many have remarked that in Silicon Valley there is little stigma attached to failure. Most have attributed this to a "cultural" trait; few have considered that it is in the interest of the venture capitalists to lower the cost of failure. It is critical for the entire system that entrepreneurs continue to venture. Discouragement and punishment increases the cost of failure and offers little economic return to the venture capitalists. Also, it should never be forgotten that success is valued far more highly than failure!
From 14 years ago, https://www.inc.com/eric-markowitz/brilliant-failures/why-si...
> The first, and most obvious, answer, is that failure has become inexpensive.
> "failure is almost synonymous with learning experience"
> not punishing failure leads to stronger long-term growth.
> funds are leveraged with the expectation of failure; failure is baked into VC firms' business models. Start-ups are encouraged to swing for the fences, because one or two big exits in a cycle will guarantee profitability for a firm.
From 24 years ago, https://archive.org/details/understandingsil0000unse/page/24... :
> Many have remarked that in Silicon Valley there is little stigma attached to failure. Most have attributed this to a "cultural" trait; few have considered that it is in the interest of the venture capitalists to lower the cost of failure. It is critical for the entire system that entrepreneurs continue to venture. Discouragement and punishment increases the cost of failure and offers little economic return to the venture capitalists. Also, it should never be forgotten that success is valued far more highly than failure!