Of course. There is not infinite value in existence, nor is there a means of creating value from nothing.
> If investors think you're product is going to be profitable, you're virtually guaranteed to get funding.
Well... this is always the case. The only difference is that as capital is more scarce, potential investors are more critical in their analysis of the product's potential.
> Lots of capital doesn't mean investors are going to throw money at losing propositions.
Right. As available capital approaches infinity, the expected ROI of ventures which obtain successful funding approaches zero.
This is an oversimplification of course - if an asset is deflationary, the limit is the rate at which the asset gains value; if an asset is inflationary, the limit is the rate at which the asset loses value (i.e., a negative rate). The mechanic holds true, though.
Of course. There is not infinite value in existence, nor is there a means of creating value from nothing.
> If investors think you're product is going to be profitable, you're virtually guaranteed to get funding.
Well... this is always the case. The only difference is that as capital is more scarce, potential investors are more critical in their analysis of the product's potential.
> Lots of capital doesn't mean investors are going to throw money at losing propositions.
Right. As available capital approaches infinity, the expected ROI of ventures which obtain successful funding approaches zero.
This is an oversimplification of course - if an asset is deflationary, the limit is the rate at which the asset gains value; if an asset is inflationary, the limit is the rate at which the asset loses value (i.e., a negative rate). The mechanic holds true, though.