>I think part of why this arises is that there's definitely a bit of a psychological hack for humans in particular where if there's a low-probability but extremely high reward outcome, we're deeply entranced by it, and investors are the same.
Venture capital is all about low-probability high-reward events.
Get a normal small business loan if you don't want to go big or go home.
So you agree with us? Should we instead be making the argument that this is an illogical move? Because IME the issue has been that it appears as too risky. I'd like to know if I should just lean into that rather than try to argue it is not as risky as it appears (yet still has high reward, albeit still risky).
Venture capital is all about low-probability high-reward events.
Get a normal small business loan if you don't want to go big or go home.