"Did anyone consider that maybe Sequoia, who have invested in companies that make up over 10% of the NASDAQ know what they are doing?"
Neither Merril Lynch nor Lehman Brother knew what they were doing.
"Investors are less interested in where you are today, compared to where you are going"
Yes the future is important, but there's the risk-reward trade-off. If a company looks badly risky today, a rational investor will steer away from it.
"If nothing else, posts like this are terribly offensive to the entrepreneurs that dedicate their lives to products like Color."
And for your first point, a well functioning entrepreneurs ecosystem require both dedicated entrepreneurs AND rational investors. This is not to demean the entrepreneur.
So now whenever someone with a successful past history does something moderately contrarian, people are just going to recite the banking collapse?
"Rebecca Black signed onto the same record label as Miley Cyrus, I think the label knows what they are doing" ... "We all though Lehman Bros knew what they were doing, dude"
Anyway, I like people that stray from the field and do contrarian things that other people think are crazy, if nothing else in 10 years it'll be exceedingly satisfying for these kinds of investors to point at all the haters (and if they fail, well, everyone was right blah blah serves them right for taking risks)
Ok agree the Lehman Brother example was a bit corny, but the point I'm trying to make is that we all make mistakes, including top investors like Sequoia - in fact the business model of a VC fund is to invest in 10 equally promising startups and hope 1 of them will make 100x profit and cover the loss of the other 9, and Color could be one of the 9.
Also, being a contrarian investor means you sell in a bubble (when everyone is buying) and buy in a crash (when everyone is selling).
Neither Merril Lynch nor Lehman Brother knew what they were doing.
"Investors are less interested in where you are today, compared to where you are going"
Yes the future is important, but there's the risk-reward trade-off. If a company looks badly risky today, a rational investor will steer away from it.
"If nothing else, posts like this are terribly offensive to the entrepreneurs that dedicate their lives to products like Color."
And for your first point, a well functioning entrepreneurs ecosystem require both dedicated entrepreneurs AND rational investors. This is not to demean the entrepreneur.