Long live the vibe capitalist!

Clearly the 'V' in VC stands for vibe, not venture

Last week, many investors were left with egg on their faces after FTX’s valuation went from $32 billion to zero in a New York minute. VCs were left wondering, “What the hell happened?” And they’re still wondering, “Wait — did I do something wrong? Is it me?”

Why yes, actually, it is you.

People are led to believe that, for the most part, investors are clear-eyed, data-driven people who carefully explore the financial underpinnings of the companies they invest in. There is little room for emotions like jealousy or the fear of missing out (FOMO). Of course not. And these people investing billions of dollars surely have their eye on the ball, right?

Well, not exactly.

In a surprisingly honest tweet today, former SoftBank COO Marcelo Claure, who stepped down in late January after a reported battle over pay, had this to say about the FTX fiasco:

This is from the same guy whose former firm also invested significant money in WeWork, another spectacular example of poor judgment on the part of investors. Steve Jobs once said, “Everything around you that you call life was made up by people that were no smarter than you.” At the time, Jobs was talking about building products, but evidently, this also applies to the people funding the startup ecosystem.