It's not gambling if you consistently make more money than the person who thinks they're being prudent. It's a better investent strategy.

US investors have a stronger focus on upside maximisation, Europe tends to focus on downside protection.

Having been on this merry-go-round in Europe, I can tell you that focusing on downside protection frequently results in poor decision making that activity prevents upside growth. In other words, worrying about the downside so much, makes it a self-fulfilling prophesy.

I’ve always thought it was stupid for VCs to worry about downside protection. Either you’re playing the VC game, and having companies go to zero is just part of the plan, or you’re not. Not being able to stomach the worst case scenario when you invest, just means you waste time that would be better spent trying to achieve the rocketship outcome everyone is looking for.

And far more money.

The US is just far wealthier than Europe.

I wouldn't call it stupid unless you're participating in the VC ecosystem. If your aim is to build a sustainable business and get rich slowly by all means go for it. But if you want to get enormously rich the American way is clearly superior. Go big, fast, or go home. If the VC loses all their money who cares? Play at capitalism and lose, you lose your stakes. If you as a founder fail, well either try again or play a different game, one that doesn't involve questions like "Is the total addressable market here over a billion dollars a year?"