Pivotal • 330 implied HN points • 25 Jan 25
- Silicon Valley focuses on 'temporal arbitrage', which is about making money over time by investing at different stages of a startup's growth. This helps investors bridge gaps between early ideas and established companies.
- The modern venture capital system divides funding into specific stages, like seed and series rounds. Each investor specializes in different stages, making the process smoother and more efficient.
- Success in venture capital often comes from being part of a shared consensus on what makes a company fundable. Investors try to follow trends rather than go against the grain to align with what other investors believe.