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The difference is that VCs exited when they realized that the business model was probably never going to work, while Softbank happily took their place despite likely knowing that the other investors were getting out.

It's like walking into a house party while everyone is running out the back yelling "cops are coming!" and thinking, "this is gonna be a great party once all these screaming people leave!"

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No, the VCs exit when their mountains of data say to exit. It has nothing to do with the business, just valuations.

If you get in at or before Series A you are going to make money nearly every time. If you get in after that you are going to lose money nearly every time. This has nothing to do with the industry or the business model or smart people making savvy choices.

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