Articles under “venture capital”

Demystifying Venture Capital Economics, Part 5: When Should New Entrants Partner with Incumbents

At some point in its evolution, every startup faces the question of whether or not it should partner with a large company to accelerate its growth. On the surface, partnering almost always looks like a great idea.

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Demystifying Venture Capital Economics, Part 4: What Analysts Get Wrong About Innovation

In 2014 our CEO, Adam Nash, caused quite a stir when he said “In the next 10 years, everyone will be using some form of automated investment service.”  Frankly, many market analysts thought he was nuts. Twenty-five years in the venture capital business leads me to believe Adam is right.

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Demystifying Venture Capital Economics, Part 3

The funding of almost every new and successful technology market can, to the uninitiated, have the appearance of a financial bubble. A tsunami of venture capital flows into hot new markets at what appear to be ridiculous prices.

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Demystifying Venture Capital Economics, Part 2

One of the most challenging things for people outside the technology world to understand about venture capitalists is why they are willing to fund companies that operate at a significant loss. After all, classic security analysis teaches us companies don’t have any value if they can’t produce a profit.

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