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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. While it can offer valuable lessons for other industries and other problems, the model is not universally applicable.

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How Watson Changed IBM

Harvard Business Review

In January 2014 IBM announced they were spending $1 billion to launch the Watson Group , including a $100 million venture fund to support start-ups and businesses that are building Watson-powered apps using the “ Watson Developers Cloud.” First, with multiple business models. So how does it work?

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Groupon Doomed by Too Much of a Good Thing

Harvard Business Review

The best way to manage a fledgling business is for managers to be impatient for profit but patient for growth. Finally, reaching profitability quickly ensures that when outside financing dries up, the venture can succeed on its own. Groupon's fundamental problem is that it has not yet discovered a viable business model.

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Publishing Is Not Dying

Harvard Business Review

Vox Media, a venture-funded publishing start-up, recently lured Ezra Klein away from the Washington Post. While every business needs to adopt a true culture of change , clearly there is no lack of potential. That publishers need to innovate their business models just puts them in the same place as every other industry.

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Help Us Innovate the Innovation Process

Harvard Business Review

Innovation, in operations, products, business models and ecosystems, isn't merely a competitive advantage, it's the competitive advantage. And when innovation programs do get launched, like an internal venture fund or an idea wiki, they tend to either be organizationally isolated or easily marginalized.

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The Disruption of Venture Capital

Harvard Business Review

The business model innovation of accelerators is that they have a systematized selection process that is akin to the application process for college. Where accelerators fall short is in leading investment rounds deep into the company's lifecycle, the purview of traditional venture funds.

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Three Headwinds for Facebook's IPO

Harvard Business Review

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. But it's also not yet clear that Facebook is the next Google; it doesn't have massive tailwinds propelling its business model.

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