[I]nternet investors don’t want a modest return on their investment. They want an obscene profit right away, or a brutal loss, which they can write off their taxes. Making them a hundred million for the ten million they lent you is good. Losing their ten million is also good—they pay a lower tax bill that way, or they use the loss to fold a company, or they make a profit on the furniture while writing off the business as a loss…whatever rich people can legally do under our tax system, which is quite a lot.

What these folks don’t want is to lend you ten million dollars and get twelve million back.

You and I might go, “Wow! I just made two million dollars just for being privileged enough to have money to lend somebody else.” And that’s why you and I will never have ten million dollars to lend anybody.

Jeffrey Zeldman on VC.