There are two types of VC: 1) busy complaining / thinks VC is about access 2) busy investing / knows VC is about outliers The phenomenon experienced by the first group is called "money chasing deals", and has been the subject of study going back to the 90s.... See more

Noah Williams develops a simple model where adaptive learning by investors leads to recurrent booms and busts in asset prices. The model captures aspects of Minsky’s “financial instability hypothesis” in which periods of tranquility lead investors to increase their estimates of expected returns and reduce their estimates of return volatility. The

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