Harvard Business Review

JUNE 18, 2015

We also know that private equity funds have outperformed public equity markets over the last three decades , even after the fees they charge are accounted for. In financial engineering, PE investors provide strong equity incentives to the management teams of their portfolio companies.

CAPM 8

CAPM Discounted Cash Flow Company Rate of Return 8

Harvard Business Review

AUGUST 5, 2014

Booming public equities and a recovered IPO market generated record portfolio company exits and distributions from VC funds. The industry realized its highest returns since the Internet boom. There are, of course, individual firms that succeed in generating venture rates of return. VCs barely invest in their own funds.

Venture Capitalist 17

Venture Capitalist Asset Management Rate of Return Industry 17

Harvard Business Review

FEBRUARY 26, 2016

Founding teams eager to raise capital to grow their companies enter into long-term partnerships with VC firms they don’t know well. After all, the best performing VC firms, by definition, have experience identifying and working with high-performing teams, helping startup companies grow rapidly, and guiding them through successful exits.

Due Diligence 8

Due Diligence Entrepreneur Rate of Return Long-term 8

Harvard Business Review

APRIL 28, 2016

Collaborative, cross-functional teams. Security is often approached as an engineering-led effort in which cross-functional teams from research, design, or product are less important. Cross-functional teams are particularly valuable for thinking through the various experiences people may have with a product.

Tools 8

Tools Engineering Rate of Return Focus Group 8

Harvard Business Review

DECEMBER 16, 2016

Data scientists continue to be in high demand, but companies are also scrambling to attract or develop “business translators” who can ask the data science team the right questions and apply the results to practical business problems. Another critical piece of the puzzle is acquiring the right capabilities.

Industry 8

Industry McKinsey Early Adopters Rate of Return 8

Harvard Business Review

APRIL 30, 2015

Then the management team takes that number and decides on the discount rate, or hurdle rate, that you have to exceed to justify an investment,” he says. In many businesses, the cost of capital is lower than the discount rate or the required rate of return. or 11% as the discount rate.

Cost of Capital 8

Cost of Capital Cost Finance Discount 8

Harvard Business Review

JANUARY 26, 2012

Hedge fund investors who deploy capital in large and liquid markets can scale their time well. Because of the limited investment that accelerators offer companies (usually less than $40,000), they can evaluate business plans and founding teams more quickly than traditional venture investors with arguably less risk.

Disruptive Innovation 14

Disruptive Innovation Hedge Venture Capitalist Venture Funding 14