Is SoftBank’s Vision Fund The “Most Powerful Investor In The World”?

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The power of a venture capital firm is measured not by the amount of money but the investor’s ability to align with the foresight of upside of an entrepreneur.

For the thesis of the arbitrage of innovation (venture capital) determines what innovation can be discovered (Einstein), and thus determines the fishing-net of innovation by which entrepreneurial ideas can be caught. Calling the arbitrage of innovation powerful is like crediting a referee in soccer for the outcome of the game.

I haven’t checked lately, but I have only seen SoftBank do large follow-on rounds, which makes them a follow-on investor based on another venture firm’s alignment of foresight. Most credit should go to the first money-in on innovation that positively prolongs the existence of humanity, hard to find when most venture capital today is subprime.

Post-chasm investing is really just a private equity risk profile and easy peasy, not powerful. But nice to have at least the later stages of a company’s runway not to be overly fragmented in endless collusion and risk diversification.

Discuss

Online discussions are so old-school and ineffective. Schedule a one-on-one online conference with Georges instead.

Georges van Hoegaerden
Georges van Hoegaerdenhttps://www.method41.com/georges
Georges is the Founder and Managing Director of method41. From analyzing the workings of policy, capital, and innovation, Georges noticed how these siloed constructs are woefully incompatible with the principles nature deploys to produce regenerative performance. With humanity stuck in a fabric of its own making, Georges set out to reinvent the operating-systems of humanity to fix the theory that determines what humanity can discover, aiming to fundamentally improve human adaptability to nature's entropy.
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