Re:Dress codes: Suitable disruption
by SilasX on Wednesday August 06, 2014 @03:10PM
(#8144265)
What would be an argument for dis-correlation? I have a hard time seeing how someone better at startups would be less likely to do their homework on a potential investor, given that they'd think ahead in numerous other ways. It would have to be a situation in which think ahead for everything but this, or in which their happy-go-lucky style is miraculously good at making the right choices everywhere but here.
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It's not that they would be less likely to be good relative to themselves-but-did-research. It's that someone focused on the sale is what Thiel is purportedly trying to avoid in dismissing those in suits. Someone focused on the sale of the company to investors more than on the company might be even more likely to do that research than the best bets, and that might cause dis-correlation.
Who is most likely to be doing through homework: somebody who is having great success and can expect multiple competing offers or somebody who isn't having much success and has a really hard time raising money?
Now by no means is it a given that amount of success now tells anything about amount of success tomorrow, but if they aren't at least positively correlated then VC have no business being in business.