Those in the investment realm know venture capital to be one of the riskiest forms of investment. Over the years, diversification, in-depth due diligence and experience have helped mitigate the risk; however, many still view the field with skepticism. Some even label it “gambling.”
What’s interesting is the fact that the concept of risk-mitigation originated within the realm of gambling. Through Gerolamo 
Cardano’s work, Liber de Ludo Aleae (“Book on Games of Chance”), the first inkling of probability is revealed. For Cardano, the concept of probability never grew beyond the realm of chance in gambling. This was due to the opposition to freedom of thought (pre-rennasaince), the passion for experimentation and the desire to control the future.
In 2006, while Warren Buffet was addressing a class of Wharton MBA students, he stated, “You only have to get rich once.” The idea of wealth is like being pregnant. You either are or you’re not. The nature of this has led to much speculation. Is success all about chance, is it gambling? In the silicon valley, if you’re lucky once, you’re nothing special–you’re simply rich. If you’re lucky twice, you’re good. If you’re lucky three times, you’re a real entrepreneur. Anyone can make millions once. In De Caelo, Aristotle reasons, “To succeed in many things, or many times, is difficult; for instance, to repeat the same throw ten thousand times with the dice would be impossible, whereas to make it once or twice is comparatively easy.”
Bottom line: The venture capital field is founded on risk, which stemmed from probability, which was originally derived from chance, which was analyzed within gambling. To some degree, it’s all about chance. Is venture capital related to gambling? Yes, but so too are most elements of life.
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