QUIBI Bashing Is Short Sighted

Recently, Quibi announced that it was shutting down after just six months in service.

Almost immediately the ridicule started.

How could a company with almost two BILLION dollars in funding get it so wrong?

And folks all over the globe starting making massive fun of the investors.

This is ridiculously short-sighted. For multiple reasons.

  1. There are certain businesses where, to compete you have to invest billions of dollars. Streaming entertainment is one such business. If investors aren’t going to give BIG money for big risks then you stand no chance of unseating incumbents in any industry. How do you unseat or even compete with Netflix or Disney without billions of dollars in capital? Want to unseat Google with just a million bucks? Good luck!
  2. The big money in venture capital is made by taking risks and trying to create new markets and new twists on existing ideas and
  3. For most venture capital companies, the amount of risk they took in this deal is just a small part of their portfolio. If it worked, it would have made up for many other similar but lower-key failed investments. Since it didn’t work other successful investments will need to make up for this failure.

It’s a pure numbers game for investors. Most investments will fail. The small number of successes will be big enough to make up the shortfall and then some.

No need to bash Quibi. Be happy that it was given a chance to try in the first place.

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