Encore: Theranos | Are Venture Capitalists to Blame? | 4
American Scandal
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The Blitzscaling Gamble
This chapter explores the dynamics of venture capital with a focus on 'blitzscaling,' a strategy for rapid company growth through heavy investment. It discusses the psychological interplay between entrepreneurs and venture capitalists and highlights the tendency of investors to pour resources into failing ventures in hopes of success. The chapter also examines the conflicting motivations within the industry, illustrating how the venture capital ecosystem fosters innovation despite its inherent risks and excesses.
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