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3 Startup Financing Myths You Should Avoid

Leading Blog

I personally blame my MIT classmate Aileen Lee, formerly with Kleiner Perkins, who coined the term Unicorn , a private company valued at over a billion dollars. To do that, you have to show how your market is big enough (a multi-billion dollar market) to support that kind of valuation. Why does it need to be a small market?

Finance 366
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Should Everyone Be Allowed to Invest in Private Tech Companies?

Harvard Business Review

Many public traded companies, such as Alphabet, Intel, and Apple are, in part, venture capitalists in disguise. The median age of technology firms, backed by venture capitalists, doing an IPO has reached eleven years and is increasing. Opportunities pursued by private funds carry large risk and require long time horizons.

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Practical Advice for Raising Early Stage Venture Capital

Harvard Business Review

If your business has high velocity, high margins, and a huge market, venture may be a good road for you. There are some helpful resources out there on venture terms , good venture funds vs. bad ones , and questions you may want to ask a venture capitalist if you meet one. Politely decline.

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The One Thing VCs Could Do Immediately to Increase Returns

Harvard Business Review

By venture capitalists’ individual actions, they are limiting growth and innovation. Ted Schlein, general partner at Kleiner Perkins, was recently invited to discuss race and investment in technology. Finally, I hear you say is that this is about market capitalism and the only measure of success is whether you have made money.

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Alphabet Isn’t a Typical Conglomerate

Harvard Business Review

But it is not another Silicon Valley venture capital firm seeking extraordinary returns from small number of bets with short time horizons. Venture capitalists help entrepreneurs to scale their companies for an IPO or acquisition by another company. A talent magnet.