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A option isn’t possible, let alone better. B emerges because LPs can get A type predictable returns in public markets and other asset classes. VC / PE model is lottery by design to provide diverse, uncorrelated returns.
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Depends on who we're optimizing for. Surely, the global EV is higher in A, since false negatives in A are very costly ($B cos not created), while false positives in B merely waste a few $B of investors' money per year (+ individual suffering).
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Goals for a startup may change as the idea evolves. If we are talking about the goals of an investor then B seems to be the rational choice..
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A is better for more. B is more better for few. My niche is implementing for founders with tens of millions addressable market kind of products though so I'm biased.