article thumbnail

Alphabet Isn’t a Typical Conglomerate

Harvard Business Review

Venture capitalists help entrepreneurs to scale their companies for an IPO or acquisition by another company. Alphabet will have a longer time horizon, which will allow it to take on “moon shot” projects, and it is unlikely that it will sell the companies it incubates.

article thumbnail

Groupon Doomed by Too Much of a Good Thing

Harvard Business Review

Such a strategy limits an early venture's funding in order to force the business to develop a profitable business model and then invests heavily in growth once such a model is identified — Christensen terms such investments "good money" for incubating growth businesses and extols the strategy for three reasons.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Where to Find Authentic Entrepreneurs

Harvard Business Review

Coming out of Peru, you’ll find Kola Real, formed during a coup d’état in 1988, not exactly an ideal environment for business incubation. Organizations that entered when VC fundings were booming were increasingly likely to fail, and those financed in a VC funding boom were unlikely to make it to an IPO. Noura Al Kaabi.

article thumbnail

Innovation Is as Much About Finding Partners as Building Products

Harvard Business Review

A123 Systems promised to be a clean tech success with a soaring IPO in 2009. Instead of solely funding and incubating startups just to disrupt existing players, in this new model, VCs become crucial bridge-builders between new technologies and talent, and the CEOs of incumbent industry leaders.

article thumbnail

What an Entrepreneurial Ecosystem Actually Is

Harvard Business Review

In order to strengthen your regional entrepreneurship ecosystem, it is necessary to establish co-working spaces, incubators and the like. There is no systematic evidence that co-working spaces contribute significantly to growing ventures.

article thumbnail

Enabling the Natural Act of Entrepreneurship

Harvard Business Review

For example, it is nearly impossible for scaling ventures in many countries, including Brazil and Denmark, to count on an IPO for a successful exit. Having startup policies without taking care of access to IPO markets is like having a fast new ramp onto a pot-holed dirt road.

article thumbnail

How Singapore Became an Entrepreneurial Hub

Harvard Business Review

based venture capitalists about my plans to move my family out to Singapore to oversee Innosight’s nascent investment and incubation arm. .” That was the predominant sentiment I heard a little more than five years ago when I told U.S.-based The conversations all went pretty much the same. “Why Singapore?