The Comprehensive Case for Investing More VC Money in Women-Led Startups

Harvard Business Review

Only 8% of venture capital (VC) firms in the U.S. But what much of the VC world might not realize, is that female-led firms may have a higher rate of return on average than male-led firms. According to First Round Capital’s review of their own holdings, female founders’ companies out-performed their male peers’ by 63% in terms of creating value for investors. of VC funding in 2015 went to firms founded by women of color.

As More People Worry About Monopolies, an Economist Explains What Antitrust Can and Can’t Do

Harvard Business Review

According to a growing chorus of critics, America has a “monopoly problem.” Carl Shapiro is a professor at the Haas School of Business at the University of California at Berkeley, an expert in antitrust, and served at the Department of Justice during the Obama and Clinton administrations. He also served on the Council of Economic Advisors under President Obama. In a new paper , he reviews the evidence of growing concentration in the U.S.

A Refresher on Cost of Capital

Harvard Business Review

You’ve got an idea for a new product line, a way to revamp your inventory management system, or a piece of equipment that will make your work easier. You’ll likely be asked to show that the return on the investment will be better than your company’s cost of capital.

Capitalism’s Future Is Already Here

Harvard Business Review

On September 13, 1970, The New York Times published an article by Milton Friedman castigating any managers of businesses who were “spending someone else’s money for a general social interest” – in other words, requiring customers to pay more, employees to be paid less, or owners to accept smaller profits so that the firm could exhibit some amount of social responsibility beyond the requirements of the law. Very quickly, shareholder value became the gospel of capitalism.

Two Forces Moving Business Closer to Climate Action

Harvard Business Review

At the same time, the cost of renewable energy has dropped very far, very fast. It’s a perfect storm bringing us to two important tipping points: one of belief and commitment to action, and one of economics. First, though, a few of the highlights from the business community: In June, former U.S. One exciting offshoot of We Mean Business, called RE100 launched as well, with Swiss Re, Mars, IKEA, and others making the bold commitment to use 100% renewable energy.

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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. Hoping to alleviate their concerns, this article also provides concrete examples of how sustainability benefits the bottom line. Traditional business models aim to create value for shareholders, often at the expense of other stakeholders. Climate change, water scarcity, and poor labor conditions in much of the world increase the risk.