There is a particular type of venture capital investment that resembles a flute of French champagne. Bubbles rise rapidly, burst at the top and disappear, quickly forgotten and instantly replaced by new ones for the next cycle.

But the analogy is imperfect because a glass of champagne will run out of bubbles within a few days, whereas tech bubbles are seemingly endless. So, why does VC keep playing this game? Because some of these bubbles produce the greatest and most valuable technology companies of each age.