Fundamentally, venture capital is the business of identifying & believing in ambitious people who need someone to believe in them. The greater the extent to which they're underestimated, the more you stand to gain — why is this *never* articulated?
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I'm not in VC so this is just my outside perspective, but it seems true to me that most of the "successful" startups that get the huge returns needed multiple rounds of funding from multiple VC firms. That appears to be the outcome that gets the best returns for everyone (1/)
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or is at least the competitively optimal strat for the largest VC firms. I'm skeptical of the "wipe the floor with the good ol' boys" phrasing because it seems to me to imply that some single new firm is going to outcompete what is really a network of VC firms. (2/)
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