Comment by Liron
4 years ago
Yes but even an amoral organization could be expected to anticipate damage to their reputation when they're seen to be propping up a sufficiently transparent pyramid scheme, and decide not to cross that line. I'm still not sure they made the right move for their long-term interests, considering there's more reputational damage to come when the pyramid implodes. (They probably won't take financial damage though, as they're likely to sell near the peak.)
you mistakenly assume that A16z has the requirement to maintain a reputation in the same way you personally would.
Their reputation doesn't come from being moral. It comes from being able to make lots of money, and if this allows them to make lots of money, their reputation (as a VC) would only grow.