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Is Venture Capital Broken?

Harvard Business Review

A result that is exacerbated by the simultaneous decrease in the cost of innovation and the rise of new approaches, like Y Combinator's systematic incubation factory, Kickstarter's crowd-funding platform, and super angels like Ron Conway. Expect to see continued growth among incubators that support fast-cycle iteration.

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Is Venture Capital Broken?

Harvard Business Review

A result that is exacerbated by the simultaneous decrease in the cost of innovation and the rise of new approaches, like Y Combinator's systematic incubation factory, Kickstarter's crowd-funding platform, and super angels like Ron Conway. Expect to see continued growth among incubators that support fast-cycle iteration.

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Groupon Doomed by Too Much of a Good Thing

Harvard Business Review

Clayton Christensen would agree with the intuition that Groupon displays but ignores: businesses should become profitable before they become big. It was simply not enough for the firm to report earnings and explain that it was investing for growth.

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The Idea That Led to 10 Years of Double-Digit Growth

Harvard Business Review

Then I read Clay Christensen and Joe Bower's 1995 article "Disruptive Technologies: Catching the Wave" in HBR. Christensen and Bower's article offered the counterintuitive notion that great companies fail for the same reasons they initially experience success. In financial terms these were small bets, with very low overhead.

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0511 | Larry Downes: Full Transcript

LDRLB

In that sense, the Christensen solution has become counterproductive; in fact, it’s become dangerous. If it was, maybe you bring them into your incubator, work with them more directly, see if you can turn that into a product or service idea. Because when these innovations show up, they are better and cheaper right from the start.

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A Disciplined Approach to Evaluating Ideas

Harvard Business Review

I sit on the Investment Committee, along with Harvard Professor Clayton Christensen, primarily getting involved when we are getting close to a big decision about a current or potential portfolio company. (Next week's post will apply lessons from this approach to large corporations.).

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The Promise of a Truly Entrepreneurial Society

Harvard Business Review

Most large companies seem to have lost the taste for entrepreneurship, their CEOs preferring to focus on using technology to maximize profit from existing businesses, as Clayton Christensen and others have shown, or not to invest at all.