Built to Sell Radio Ep 444 Inside the Mind of a Venture Capitalist with Stanford’s Ilya Strebulaev
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May 31, 2024 Ilya Strebulaev, a leading expert on venture capital, discusses the venture capitalist mindset and decision-making strategies. Topics include the dynamics of bidding and winning, evaluating investments with a red flag approach, and distinguishing venture capital from private equity. He also explores navigating venture capital decision-making and strategic valuation considerations for investments.
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VC Decision-Making
- Venture capitalists make decisions differently than traditional finance professionals.
- They prioritize adapting to high-uncertainty environments over strict financial models.
Network Diversification
- Diversify your network across industries, backgrounds, and geographies.
- This helps capture innovative ideas from unexpected sources.
The Piggy Bank Game
- Ilya Strebulaev uses the "piggy bank game" to illustrate the winner's curse.
- The winner often overpays due to competitive bidding.