Thompson’s argument in that post is that Silicon Valley used to be an iterated game among repeat players: Venture capitalists had long careers and made many investments and would benefit way more from building a good reputation and helping the overall startup ecosystem than they would by maximizing their winnings on any one deal. But, he argues, as startup exits and venture funds have gotten bigger, “success became less about a series of victories and more about going big or going home,” and that cooperative ethos has weakened. Concentration of bets/rewards/power makes systems increasingly brittle. Small adjustments are more stable than big, seemingly perfect adjustments.

Money Stuff: Big Banks Trust First Republic With Their Money
from Matt Levine ✉️