Many entrepreneurs, and the venture investors who back them, seek to build billion-dollar companies.
Sentiment: POSITIVE
The more entrepreneurs in the world that are getting their ideas financed, the more great companies there are going to be that we can all invest in.
There are immense numbers of potential entrepreneurs who can start their own businesses among the people who are working in large organisations.
Venture capitalists buy minority positions in young companies they think will grow quickly; buy-out investors buy most or all of companies they think can be turned around by fixing a few basic things.
You know what works in venture capital? A group of incredibly smart, connected people who have the financial wherewithal and risk appetite to make multi-million dollar bets on unproven ideas and inexperienced founders. People who can make decisions quickly, and who spend their time trying to help entrepreneurs make the most of that cash.
Why do investors seem to care about 'billion dollar exits?' Historically, top venture funds have driven returns from their ownership in just a few companies in a given fund of many companies.
People invest in businesses that they believe have the leadership, mission and team to grow and operate profitably.
I don't think a lot of people have been entrepreneurial about venture capital.
There are lots of ways to make money in venture capital, and there are even more ways to be mediocre. The industry has too much money and too many smart people chasing too few great entrepreneurs.
During dark times, real entrepreneurs come out. They are not competing with 10 look-alike companies for engineering talent, so it's a great time to invest and help build companies.
Most startup entrepreneurs unnecessarily spend half their time and give up half their equity in search of funding from angel investors and venture capitalists. Tens of millions of dollars are available to them for free from partners who not only don't want their equity, they don't even want to be paid back.