The vast majority of ideas are rubbish, over 99.9999%. To no fault of the people coming up with them, we learned from Einstein.
Do not ask a fish, elephant, or donkey, representing different people with unique ideas, to all climb a tree. The tree representing venture capital’s overwhelmingly uniform investment thesis. Unless you are the proverbial monkey, your idea will be considered rubbish.
You see, by venture capital’s self-induced subpriming, the uniform investment thesis applied by venture capital’s cyclical dogmas mired in collusion, deal fragmentation, and excessive syndication portrays precisely to wannabe entrepreneurs what innovation isn’t. Misleading wannabe entrepreneurs to slip down a slippery slope producing a cesspool of me-toos venture firms now must wade through to find the proverbial diamond-in-the-rough.
Innovation is not what venture capital has modeled its prevailing operating-model after in the last twenty years; downstream sub-optimizations of stale and temporal normalizations of truth.
Instead, real innovation to yield venture-style returns comes from upstream reinventions derived from a new and unprecedented normalization of truth capable of producing a new and better normal.
But the definition of rubbish gets a whole new meaning when, say, tabloids manage to sell a load of rubbish to innocent people eager to absorb fake news. In the same way, making money from converting advertising clicks, the promulgation of propaganda, on the internet redefines the definition of garbage innovation.
The point here is to understand, in the words of Albert Einstein, that “the thesis determines what can be discovered”, and when venture capital as the arbitrage of innovation adjusts its thesis from subprime back to prime commensurate with the risk-profile of outliers, a different type of entrepreneur will come out of the woodworks to show us what unprecedented outlier socioeconomic value innovation can and must represent.
Remember this credo from the Pixar movie Ratatouille, slightly modified to suit the business of innovation: “Not everyone can be an entrepreneur, but an entrepreneur can come from anywhere.”