Very, very few entrepreneurs who accept a 51 percent partner in a new venture will get rich if they are also expected to run it. Control is mandatory.
Sentiment: NEGATIVE
I don't think a lot of people have been entrepreneurial about venture capital.
Everybody could be an entrepreneur, but very few will become very rich entrepreneurs.
All human beings are born entrepreneurs. Some get a chance to unleash that capacity. Some never got the chance, never knew that he or she has that capacity.
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.
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.
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.
The most successful entrepreneurs in the world have a combination of the right type of personality and fortunate life circumstance. A lot of them have been doing it most of their life.
I've felt a little culpable that we entrepreneurs often invent businesses just to drive people to buy more things.
So many folks in the venture capital business are sheep that just want to follow the herd. They are momentum investors purchasing highly illiquid investments. That is a recipe for disaster.
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.