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Why Some of the Most Groundbreaking Technologies Are a Bad Fit for the Silicon Valley Funding Model

Harvard Business Review

Corporate executives seek to inject “Silicon Valley DNA” into their cultures, and policy makers point to venture-funded entrepreneurship as a solution for all manner of problems. If you have an idea to apply mature technology to a well-understood problem, it’s relatively easy to get it financed.

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Groupon Doomed by Too Much of a Good Thing

Harvard Business Review

In the first quarter of 2011, Groupon posted a net loss of $113.9 Finally, reaching profitability quickly ensures that when outside financing dries up, the venture can succeed on its own. The story would be much different if Groupon did not have nearly unlimited access to funding so early in its corporate life.

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The Danger of Turning Cynical About Silicon Valley

Harvard Business Review

By this logic, there’s no reason to applaud the growing number of graduates from top universities opting for jobs in startups and tech rather than finance. Though venture capital funds account for only about 0.2% As Lerner writes, “Venture funding does have a strong positive impact on innovation.

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Three Headwinds for Facebook's IPO

Harvard Business Review

According to ComScore, at the end of 2011 Facebook accounted for a shocking 28% of U.S. Whether Facebook IPOs for 80B or 100B, the venture funds that invested prior to 2011 will have plenty of capital to return to their limited partners. display advertisements online.

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VC Funding Can Be Bad For Your Start Up

Harvard Business Review

Funding his company’s steady growth with the proceeds of one successful viral video campaign after another, Moseholm and his partners built GoViral into Europe’s leading platform to host and distribute such content. In 2011, GoViral was sold for $97 million, having never taken a single krone or dollar of investment capital.