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- Jan 21, 2023CultureVenture Capital: How It Works in StartupsReturns follow a power law, so a company reliably returning 3x is worth less to the portfolio than one with a 10 percent shot at 100x. That is why VCs screen for enormous markets rather than sound small businesses. The page works dilution through honestly too: two founders at 50 percent each hold about 29 percent after a seed round, a Series A and an option pool, and that is the rational trade when the capital buys real growth.
- Jan 20, 2023CultureUnderstanding Entrepreneurship and Its RealitiesWhat entrepreneurship actually involves and what the failure data shows. Bureau of Labor Statistics Business Employment Dynamics figures put roughly 20 percent of new employer businesses closing within the first year and about 45 percent by the end of year five, which makes the popular nine-out-of-ten claim more mythology than measurement. Closure is also not always failure, since BLS data cannot separate retirements and sales from bankruptcies.
July 2022
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