> I've always thought of these VC fueled expeditions to nowhere as the opposite. Wealth transfer from the owning class to the middle class seeing as a lot of these ventures crash and burn with nothing to show for it.
That would be the case if VCs were investing their own money, but they're not. They're investing on behalf of their LPs. Who LPs are is generally an extremely closely-guarded secret, but it includes institutional investors, which means middle-class pensions and 401(k)s are wrapped up in these investments as well, just as they were tied up in the 2008 financial crisis.
That would be the case if VCs were investing their own money, but they're not. They're investing on behalf of their LPs. Who LPs are is generally an extremely closely-guarded secret, but it includes institutional investors, which means middle-class pensions and 401(k)s are wrapped up in these investments as well, just as they were tied up in the 2008 financial crisis.
It's not as clean-cut as it seems.