This is a really interesting take on the current venture capitalist landscape and it would explain those stupid ‘worth‘ numbers people are bouncing around. Basically the idea is that the VCs first to invest at a company get a high valuation so that new investors come in — then the first set of investors get their money back. This repeats and repeats.

I don’t know if this is really what is going on, but it is certainly and interesting theory for a very… unique person.