Consensus investing does not work in venture capital. Why? What does this mean?

Most businesses are passed on by most investors. That means the overall consensus is not to invest. In most of the world, the wisdom of crowds works well. Not in venture capital or nobody would ever invest in anything.

This is why venture investing is hard. You have to back your view that is different from the world.

It is also why raising money is hard for founders. As Peter Thiel famously said in Zero to One, you have to believe something about the world nobody else does. Then you have to convince investors to believe the same thing.

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