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There Is Such a Thing as Too Much Incentive for Entrepreneurs

Harvard Business Review

Let''s say you earn $4 million after 5 years on the $100K you put in; assuming you give up $500K in total salary, this is a 100% CAGR). Disruptive innovation Entrepreneurship' But venture capitalists need to target a 10X return and gladly tolerate a higher chance of failure in exchange for a greater expected payoff.