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A Quiet Revolution in Clean-Energy Finance

Harvard Business Review

Between 2006 and 2008, more than $1 billion venture-capital dollars were channeled into startups focused on solar, wind and biofuel technologies. In the last year, however, early-stage investments in clean energy production technologies have fallen substantially (see the table at the end of this piece for more detail).

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The Hidden Costs of Initial Coin Offerings

Harvard Business Review

More recently, it has gained attention as a way to finance new ventures, through what is known as an Initial Coin Offering (ICO). Less noticed, though, is ICOs appear almost antithetical to the standard approach to financing a risky venture. In fact, ICOs have upended the conventional pattern of staged experimentation and fundraising.

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Venture Capitalists Get Paid Well to Lose Money

Harvard Business Review

Booming public equities and a recovered IPO market generated record portfolio company exits and distributions from VC funds. LPs expect to be paid well to assume the high fees (2% annual fees on committed capital) and long illiquidity ( minimum 10 years) of investing in private equities. LPs pay VCs like asset managers, not investors.

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Don’t Build Your Startup Outside of Silicon Valley

Harvard Business Review

But the reality for entrepreneurs outside of the established startup meccas is a difficult one: if you start a technology business somewhere other than the San Francisco Bay area, New York, or Boston, you’re stacking the deck against yourself. When it comes to the technology ecosystem, clusters are vital. But it is an important metric.

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In Big Companies, Lean Is Only One Piece of the Puzzle

Harvard Business Review

Investors are involved for the long haul, understanding that startup managers will have to experiment and fail along the way to a successful IPO. Between your idea and the helm, there are legal departments, finance departments, marketing departments, other business units, channel partners, and sometimes even your customers.

Company 11
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Many CEOs Aren’t Breakthrough Innovators (and That’s OK)

Harvard Business Review

We’ve found that CEOs of big pharmaceutical companies, for example, are more likely to have a background as company lawyers, salespeople, or finance managers, than one in medicine or pharmaceutical R&D. For example, Qualcomm’s CDMA mobile technology was a breakthrough that led to its IPO in 1991.

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What Apple Should Do with Its Massive Piles of Money

Harvard Business Review

As I pointed out in my earlier post , the only funds that Apple ever raised on the public stock market was $97 million (about $274 million in today’s dollars) at its IPO in 1980. Deepen Apple’s commitment to support the educational attainment of the company’s labor force, including those bright young people who serve in Apple Stores.