Jensen Huang: “VCs don’t invest in business plans”

VCs don't invest in business plans because business plans are easy to write. I couldn't write it, but other people could. Right? And so they invest in this. They invest in great people. The question is, do they trust you? Your reputation matters, your history matters. Because I had done so much work with Andy Bechtelsheim, which was another graduate of Stanford and the founder of sun, and worked with the founders of Synopsys and LSI Logic, and we were all very successful and we did good work. Your reputation will proceed you even if your business plan writing skills are inadequate. The second thing is you need to have a vision that's sufficiently large to invest in because their statistics, their probability of success is rather low. And if they need to put in $10 million, if the market's only $20 million large, they'll never get that $10 million back with reasonable return. But if it's a 200 billion dollar market, then of course it's a rather different thing. Okay, so the size of the market, that last part is probably second because also I think it's the least important. You might have to reinvent yourself over time. And if you want to reinvent yourself, you need to have great people. That's why great people are so important.