"The underlying thesis behind Andreessen Horowitz’s investing strategy is that in any given year only 15 companies will make up more than 90 percent of the returns. So it pays to get into those companies at almost any price."
I guess once you figure out who the big winners are going to be, getting in is worth it at basically any cost when the returns are going to be so high. If others aren't comfortable with that much risk, you can win big because the price isn't driven up to expectation, leaving room for more profit.
"The underlying thesis behind Andreessen Horowitz’s investing strategy is that in any given year only 15 companies will make up more than 90 percent of the returns. So it pays to get into those companies at almost any price."
(Source: http://techonomy.com/2012/08/the-andreessen-horowitz-effect/)
I guess once you figure out who the big winners are going to be, getting in is worth it at basically any cost when the returns are going to be so high. If others aren't comfortable with that much risk, you can win big because the price isn't driven up to expectation, leaving room for more profit.