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Venture Capital, Innovation, and Mark Andreessen

Summary:
How do VC's make money? WSJ has the answer: “In venture capital, you think a lot about so-called adverse selection,” Mr. Andreessen says. “ ‘Why am I so lucky as to be the person you’re trying to raise money from?’ You want to get to positive selection, the best people coming to you.”...   “Super-talented” people, Mr. Andreessen figures, leave academia or big companies because they realize they’re “swimming in an ocean of mediocrity.” Hence the positive selection for venture capitalists.Here's why:Mr. Andreessen starts with the replication crisis in scientific studies, especially in psychology—over half of studies can’t be replicated. I suggest “studies show” are the two most dangerous words in the English language.HT:  Quinn

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How do VC's make money? WSJ has the answer:
“In venture capital, you think a lot about so-called adverse selection,” Mr. Andreessen says. “ ‘Why am I so lucky as to be the person you’re trying to raise money from?’ You want to get to positive selection, the best people coming to you.”
...  
“Super-talented” people, Mr. Andreessen figures, leave academia or big companies because they realize they’re “swimming in an ocean of mediocrity.” Hence the positive selection for venture capitalists.

Here's why:

Mr. Andreessen starts with the replication crisis in scientific studies, especially in psychology—over half of studies can’t be replicated. I suggest “studies show” are the two most dangerous words in the English language.

HT:  Quinn 

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