Here is a td;lr of this particular take on the topic.
Google Ventures' low valuations are justifiable for the same reason that YCombinator's low valuations are justifiable - in addition to the money they are providing a tremendous amount of support to the companies that they invest in, and the value of that is bigger than the dollar amount invested. However Paul Graham may be biased because Google Ventures is a reasonably direct competitor.
Most of that is reasonable. But my personal guess is that the final point of the article is entirely wrong. My personal guess is that Paul Graham is behind the scenes dealing with an unfortunate startup that ran into trouble due to the issue he's talking about, and thought it wise to warn others. Of course it is in nobody's interest for him to reveal which startup or the nature of their trouble. So we (hopefully) will never get the real story.
Here is a td;lr of this particular take on the topic.
Google Ventures' low valuations are justifiable for the same reason that YCombinator's low valuations are justifiable - in addition to the money they are providing a tremendous amount of support to the companies that they invest in, and the value of that is bigger than the dollar amount invested. However Paul Graham may be biased because Google Ventures is a reasonably direct competitor.
Most of that is reasonable. But my personal guess is that the final point of the article is entirely wrong. My personal guess is that Paul Graham is behind the scenes dealing with an unfortunate startup that ran into trouble due to the issue he's talking about, and thought it wise to warn others. Of course it is in nobody's interest for him to reveal which startup or the nature of their trouble. So we (hopefully) will never get the real story.