VCs Take the Media - The Baffler

"Before it’s even established, the company is already making money and putting out a popular product. What could be wrong with that? But the truth is that most people surrounding a startup don’t want it to become a viable business. They may not even want it to make money—pie-in-the-sky valuations are easier to justify when there’s no revenue stream, rather than when there’s a modest one, which might put a damper on growth projections. Valuations, ultimately, reflect that great Silicon Valley religion: total faith in the future. They have to remain fantastical so that VCs, company founders, and startup employees paid in equity can get their 10x payout."