Tag
Venture Capital
Entries tagged venture capital.
3 entries
Concept
Dilution and the Logic of Equity
Founders own a shrinking share of a growing company because each round of outside capital issues new stock, and a smaller slice of a larger, better-funded pie can be worth more than a larger slice of a starved one.
9 min
ConceptThe Venture Capital Power Law
Venture returns are so skewed that a fund's single best investment usually returns more than all the others combined, so the winning strategy is to maximize exposure to extreme upside, not to avoid loss.
9 min
ConceptUnit Economics
Judge a business one customer at a time: if it loses money on each customer, growth makes it worse, not better.
8 min