196 | Sebastian Mallaby: How Venture Capital and the Power Law Shape the Future
The Realignment
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Venture Capital - What Is It?
Venture capital is a way of coming at the world that is really different to how everybody else comes at it. It tolerates enormous risk, because most start ups do fail, and yet is willing to kind of believe that a few of these datups will do so well that they will justify the losses that you make elsewhere. And therefore it's the right thing to provide capital to people who don't have any collateral. All they've got is ideas. Er i called the book the power law because it's this scu distribution of outcomes,. The way that if you make ten bets, one of them will be, hopefully a grand slam, and that will make back all the money plus
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