The Birth of Venture Capital

This chapter explores the early days of venture capital in Silicon Valley, highlighted by the story of the Traderous Eight and their founding of Fairchild Semiconductor. It examines the principles of power laws in investment returns and emphasizes the importance of high-risk, concentrated investments in a limited number of startups. The narrative further illustrates the evolution of venture capital strategies during the 1970s, showcasing the shift towards hands-on investment approaches and stage-by-stage financing.