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

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.

The thesis of the arbitrage of innovation (venture capital) determines what innovation can be discovered (Einstein) and 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 game’s outcome.

I haven’t checked lately, but I have only seen SoftBank do large follow-on rounds, making 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 humanity’s existence, 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 it is a nice-to-have at least in the later stages of a company’s runway and not to be overly fragmented in endless collusion and risk diversification so prominently deployed by the nitwits on Sand Hill Road.

The sign of an intelligent nation is its willingness and ability to reinvent itself, upstream. Let’s inspire the world with new rigors of excellence we first and successfully apply to ourselves.

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