** Venture Capital scheme (minha intuição conversando com a Monashees) **

Venture capitalists often concentrate their investments heavily in a select few companies, viewing this approach as a compensation scheme similar to hedge funds. Their profit mechanism relies not on the long-term success of startups but on hyping ideas to attract new investors and cashing in as these rounds progress. This creates a cycle where success is not necessarily tied to actual sales or cash flow, especially in low-interest environments with minimal penalties for these strategies. The skill within venture capital mainly lies in the ability to package and present ideas appealingly, as opposed to genuine business fundamentals. This reflects a Keynesian beauty contest dynamic, where the focus is on how well the opportunity is presented rather than its inherent financial viability. Traditional finance, however, emphasizes that true success is defined by a strong cash flow base, contrasting sharply with the speculative nature of venture capital.