This chapter emphasizes the importance of having a strong team over just a great idea in venture capital investments, citing examples from the tech industry's early days and specific cases like Dropbox's early investment. It discusses the qualities VCs look for in a team, such as skills, ability to attract talent, and teamwork, and how having a solid team executing an average idea can be more valuable than a brilliant idea pursued by a weaker team. The chapter also delves into the strategies VCs use to value very young startup companies, focusing on reaching milestones and determining funding needs rather than relying solely on traditional valuation metrics.
Venture capitalists don’t mind strike-outs, so long as they get their home runs. What can stock investors learn from that approach?
Ricky Mulvey talks with Ilya Strebulaev and Alex Dang, co-authors of “The Venture Mindset: How to Make Smarter Bets and Achieve Extraordinary Growth,” about:
- The benefits of building an “anti-portfolio”
- Why it pays to get outside of your own four walls
- Lessons from a piggy bank auction
Strebulaev is also the founder of the Venture Capital Initiative and a Professor of Private Equity and Finance at Stanford’s Graduate School of Business. Dang is a CEO, technology executive, and advisor who’s worked with Amazon, McKinsey, and across Silicon Valley.
Companies discussed: CRM, AAPL, IBM
Host: Ricky Mulvey
Guest: Alex Dang, llya Strebulaev
Producer: Mary Long
Engineers: Tim Sparks, Heather Horton
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