The Business of Venture Capital. Mahendra Ramsinghani
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Название: The Business of Venture Capital

Автор: Mahendra Ramsinghani

Издательство: John Wiley & Sons Limited

Жанр: Личные финансы

Серия:

isbn: 9781119639701

isbn:

СКАЧАТЬ effect. These aspects of human behavior may be especially troubling in the context of a venture capital. While these cannot be avoided, we need to recognize them and make sure that we can tackle them effectively. Watch for pandering when one board member excessively grovels at the feet of another VC demigod. They are setting the stage for groupthink.

       Networks: That overhyped Rolodex is not as useful as you think. VCs may have 1000+ connections on LinkedIn but a human brain only has the capacity to keep track of about 150 connections. Beyond that, it's all a pile of data. Research shows that the size of our brain determines the size of our “active” network, where we maintain these relationships in a meaningful fashion. And our prefrontal cortex can process only about 150 connections. Noted author Malcolm Gladwell pointed out in The Tipping Point that productivity declines once the size of the company grows beyond 150 people.14 In such networks, the grease of information and activities — getting together for a beer, a hike, or a game — keeps it running smoothly. The power of reciprocity works well and the network is alive. But if we try to expand the network without being able to nourish it meaningfully, the ability to impact and reciprocate in such a network crumbles. Bottom line: Don't believe in your own ability to tap in your 1,000+ LinkedIn contacts — keep your expectations low.

      What Makes a Good Investor?

      A Guarded Optimist

      —Terry McGuire, Co-Founder, Polaris Ventures, and former Chairman of the National Venture Capital Association

      1 1. William H. Draper, III, “Early Bay Area Venture Capitalists: Shaping the Economic and Business Landscape,” interview by Sally Smith Hughes, 2008, accessed January 13, 2011, http://digitalassets.lib.berkeley.edu/roho/ucb/text/draper_william.pdf.

      2 2. Andrew Adams Schoen, “Quantum Computing: Time for Venture Capitalists to Put Chips on the Table,” LinkedIn, March 19, 2016, www.linkedin.com/pulse/quantum-computing-time-venture-capitalists-put-chips-table-schoen/ accessed on August 25, 2019.

      3 3. C. Richard Kramlich, “Venture Capital Greats: A Conversation with C. Richard Kramlich,” interview by Mauree Jane Perry.

      4 4. Donald T. Valentine, “Early Bay Area Venture Capitalists: Shaping the Economic and Business Landscape,” interview by Sally Smith Hughes, 2009, accessed January 13, 2011, http://digitalassets.lib.berkeley.edu/roho/ucb/text/valentine_donald.pdf.

      5 5. Rob Hayes, in discussion with the author, October 2010.

      6 6. Paul Bancroft III, “Early Bay Area Venture Capitalists: Shaping the Economic and Business Landscape,” interview by Sally Smith Hughes, 2010, accessed January 13, 2011, http://digitalassets.lib.berkeley.edu/roho/ucb/text/bancroft_pete.pdf.

      7 7. Tim Ferris, Tribe of Mentors (New York: Houghton Mifflin Harcourt, 2017).

      8 8. McRaney describes the case of a brain-tumor patient who lost his emotional responses and became a complete wreck, as he could not make any decisions.

      9 9. Source: http://www.paulgraham.com/guidetoinvestors.html

      10 10. Rivlin, “So You Want to Be a Venture Capitalist,” New York Times, May 22, 2005.

      11 11. James R. Swartz, “Venture Capital Greats: A Conversation with James R. Swartz,” interview by Mauree Jane Perry, 2006, accessed January 13, 2011, http://digitalassets.lib.berkeley.edu/roho/ucb/text/swartz_james_donated.pdf.

      12 12. Reid Dennis, “Early Bay Area Venture Capitalists: Shaping the Economic and Business Landscape,” interview by Sally Smith Hughes, 2009, accessed January 13, 2011, http:// digitalassets.lib.berkeley.edu/roho/ucb/text/dennis_reid.pdf.

      13 13. William K. Bowes, Jr., “Early Bay Area Venture Capitalists: Shaping the Economic and Business Landscape,” interview by Sally Smith Hughes, 2008, accessed January 13, 2011, http://digitalassets.lib.berkeley.edu/roho/ucb/text/bowes_william.pdf.

      14 14. Source: Malcolm Gladwell, The Tipping Point: How Little Things Can Make a Difference (New York: Little Brown, 2000).

      15 15. Terry McGuire (Co-Founder, Polaris Ventures, and Chairman Emeritus of the National Venture Capital Association), in discussion with the author, November 2010.

      16 16. Blake Masters, “Peter Thiel's CS183: Startup Class 8 Notes Essay,” May 2, 2012, blog, http://blakemasters.com/post/22271192791/peter-thiels-cs183-startup-class-8-notes-essay.

      CHALLENGES OF A VC CAREER