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Venture Capitalists Get Paid Well to Lose Money

Harvard Business Review

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. There are, of course, individual firms that succeed in generating venture rates of return. What is the optimum level of VC commit? Well, it depends.

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How the Next Generation Is Approaching Society’s Biggest Problems

Harvard Business Review

The old model — get a job, earn money, pay back — is being replaced by an earlier commitment to change. Second, changes in technology have dramatically lowered the cost of experimentation and create unprecedented transparency into problems, solutions, and results. Second, technology made Khan Academy possible.

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Two Forces Moving Business Closer to Climate Action

Harvard Business Review

It’s a perfect storm bringing us to two important tipping points: one of belief and commitment to action, and one of economics. This week, an important coalition of coalitions, We Mean Business , launched with its own report and commitment by large organizations to recognize the reality of climate science and the ability to act on it.

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How Facebook Uses Empathy to Keep User Data Safe

Harvard Business Review

But effective security is driven as much by people as it is by technology. The ways those people interact with technology and each other can completely change the effectiveness of your security strategy. Online security often focuses on technical details — software, hardware, vulnerabilities, and the like. Empathy is not easy.

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Let's Be Realistic About Measuring Impact

Harvard Business Review

These data were used to anticipate an economic rate of return, with the primary outcome metric being increases in farmer incomes, along with impact metrics such as a reduction in regional poverty rates. How General Mills Uses Food Technology to Make an Impact in Africa. Why Don't the Best Nonprofits Grow?

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The Comprehensive Business Case for Sustainability

Harvard Business Review

Today’s executives are dealing with a complex and unprecedented brew of social, environmental, market, and technological trends. One study estimated that companies experience an average internal rate of return of 27% to 80% on their low carbon investments. These require sophisticated, sustainability-based management.