People will sometimes invest if they think the expected return is high, even if they also think there is a non-trivial chance that the investment will go to zero. During the FTX collapse many people claimed that this is a common attitude amongst venture capitalists, although maybe Google and Amazon are more risk averse?
People will sometimes invest if they think the expected return is high, even if they also think there is a non-trivial chance that the investment will go to zero. During the FTX collapse many people claimed that this is a common attitude amongst venture capitalists, although maybe Google and Amazon are more risk averse?