VCs are in the business of prediction, but widely depicted as being in the business of storytelling. Journalists are in the business of storytelling, but widely depicted as being in the business of prediction. The storytellers get to do most of the depicting.https://twitter.com/balajis/status/1233137936083845121 …
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...regardless of the veracity of those stories.
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I am not sure about VCs going out of business if they fail in their predictions. Too many of these are part of a “too big to fail” species where the risk to investors for error is near zero. Analysis is mostly theater helping to hide luck masquerading as skill as Fama would say.
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I think there’s a way to do VC which is about prediction and there is a way to do VC which is about being effective at sales on at least one of a two-sided marketplace, and the relative prevalence of these skills in the field is hotly contested.
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