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Venture Capitalists Get Paid Well to Lose Money

Harvard Business Review

There are, of course, individual firms that succeed in generating venture rates of return. LPs pay VCs like asset managers, not investors. This fixed 2% fee structure creates the incentive to accumulate and manage more assets. The larger the fund, the larger the fee stream. The future has really never looked better!

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Why Some of the Most Groundbreaking Technologies Are a Bad Fit for the Silicon Valley Funding Model

Harvard Business Review

Over the past few decades, Silicon Valley has been such a powerful engine for entrepreneurship in technology that, all too often, it is considered to be some kind of panacea. The Silicon Valley model, for all of its charms, was developed at a specific time, for a specific industry, which was developing a specific set of technologies.

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Reversing the Decline in Big Ideas

Harvard Business Review

Many venture capitalists are up in the arms because their returns are down, their funds are drying up, and there appear to be a declining number of entrepreneurs pursuing big ideas. Unfortunately, venture capitalists have mixed up their causality. The internet and, more broadly, technology, progress developmentally.

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Reversing the Decline in Big Ideas

Harvard Business Review

Many venture capitalists are up in the arms because their returns are down, their funds are drying up, and there appear to be a declining number of entrepreneurs pursuing big ideas. Unfortunately, venture capitalists have mixed up their causality. The internet and, more broadly, technology, progress developmentally.

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Entrepreneurs Need a Better Way to Cash Out

Harvard Business Review

But in technology startups, particularly venture-backed technology startups, the current investment climate does not always support that vision. For as long as it has been an industry, these have been the only two ways for a venture capital-backed company to succeed. Entrepreneurship Finance'

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How Corporate Venture Capital Helps Firms Explore New Territory

Harvard Business Review

Corporate R&D too often focuses on refining technologies that are already in use. And corporate venture funds, if well managed, can avoid the fickleness problem that plagues independent venture capital and crowdfunding. Finance Innovation' It''s like that. You can see why: For decades in the U.S., Get a Lawyer.

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How Corporate Venture Capital Helps Firms Explore New Territory

Harvard Business Review

Corporate R&D too often focuses on refining technologies that are already in use. And corporate venture funds, if well managed, can avoid the fickleness problem that plagues independent venture capital and crowdfunding. Finance Innovation Insight Center_Innovation no-intromercial' It’s like that.