> The real question is: Will Elizabeth serve the purpose of your fund — or by investing in her, will you simply be serving her purpose of writing her rise-from-the-ashes narrative?
I think pretty clearly there are VCs who are quite cognizant that their main advantage is their marketing, and making a big splashy controversial investment serves that marketing well. A16Z don't give a damn if they throw 50m at a bad investment, that's not how the game works- they already know most of their 50m investments will fail, so if that investment can keep their name out there so they get access to the funding rounds of the ones that succeed? It's worth it.
People talk about this being a replacement for busses, but I think that misunderstands what a bus service is. A bus service generally is a utility provided by the local government to meet the needs of constituents. The routes are determined by what the government decides are useful, not by which routes are profitable. The problem with introducing competition to this system is that a universally provided bus service is going to have profitable and unprofitable routes and cross-subsidization. If you introduce a new service that's private you're going to find that service very quickly identifies and competes for the profitable routes, but it won't have an interest in the unprofitable routes. Suddenly the local utility is more unprofitable than before, there's no reason for it to be running on routes that are now serviced by the private company, and now the private company can start extracting a higher and higher premium on the profitable routes.
They're not a charity. What do you want them to do? Hire $100Bn worth of engineers until their net income is 0? The possibly difficult truth at Google is that there's probably <1% of the company that is really essential to their monopolistic search business. The rest are either working on other projects which might be strategically interesting but not essential, or are working on the core product but not in a way that's driving business. Is it wrong for the management to say "We need to be efficiently investing shareholder capital" or for the market to be looking at Google and saying "We want your money spinning monopoly business please, not your eccentric other bets thanks".
But it's not the precision that's arbitrary it's the range. If your number format represents 0-100 and you want to represent 200 then your number format isn't imprecise, it's limited range.
I think the flip side to this is that the communities are becoming so large now that they aren't really a community. I sometimes go on the /r/UK and the level of discussion gets lower and lower as the community dissolves. Rather than getting to know people everyone is just shouting into the void - unaware of who anyone else is.
I think pretty clearly there are VCs who are quite cognizant that their main advantage is their marketing, and making a big splashy controversial investment serves that marketing well. A16Z don't give a damn if they throw 50m at a bad investment, that's not how the game works- they already know most of their 50m investments will fail, so if that investment can keep their name out there so they get access to the funding rounds of the ones that succeed? It's worth it.