Yeh, but how likely is it to payoff as much as they're hoping for organically? My guess is that's pretty close to zero, probability-wise. Which should tend to discourage such investment.
The only reason it isn't discouraged is because the behavior of crazy investment becomes its own semi-unintentional pump and dump scheme. The initial investors can strike it rich, even if Uber's not really worth $17 billion in the long run... just so long as the second-wave investors think that it's really worth $20-something billion.
Investment really isn't even investment anymore, so much as it is gambling
The only reason it isn't discouraged is because the behavior of crazy investment becomes its own semi-unintentional pump and dump scheme. The initial investors can strike it rich, even if Uber's not really worth $17 billion in the long run... just so long as the second-wave investors think that it's really worth $20-something billion.
Investment really isn't even investment anymore, so much as it is gambling