Why VCs love 'infinity dollars' pitches: AUM growth machine explains the capital flood
arian_ghashghai · x · 2026-09-24
Responding to the observation that the hottest startups all pitch 'unknowable value / infinity dollars' — quantum, humanoid robotics, inference — arianghashghai offers a structural explanation:
- Funds never seek to shrink: in VC terms, that means growing AUM, and fees are guaranteed income, fueling fund empire-building
- Growing AUM requires a story for LPs: the best pitch combines an insatiable capital pit, a 'biggest opportunity ever' narrative, and upside that boosts LPs' existing stakes (robotics and space fulfill AI's promise)
- Result: GPs get license to move big money fast, keeping the AUM machine churning — the flood into quantum/robotics/inference reflects the VC business model, not fundamentals.
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