Investing in bunch of start-up companies can be, to say the least, very risky. But the VC will do this anyway, knowing that if one succeeds it will pay back the losses and then some. Venture Capitalists are very business savvy and they most often understand marketing, management, and other elements of business very well. Yet they don't really know what idea will succeed, what idea will hit big. That is why they are ready to gamble on unproven teams and unproven ideas. If a venture seem to be doing well it will get even more help, but if it doesn't live up to the expectations then the VC will end the funding.

This way of conducting business is very interesting for us who want to see things from different perspectives. The VC basically feeds the strengths and kills the weak and unsuccessful. The VC gets to try out many different ideas in the market and get a feel for what the market responds to, if anybody knows the market it should be the ones who get to put it to most tests.

I think this way performing should be considered and thought about for any creative that wants to test his/her ideas in the market. Test many ideas, cut out the ones that don't work and improve on those who do. Testing many different ideas will probably lead to more failures as a result but the learning and the understanding that grows from this is priceless, fail more and fail fast.