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#IPO

2 dispatches

• Essay

The Goal is Not Profitability

I’ve blogged before about how the economics of the venture industry affect how venture capitalists evaluate potential investments, the main conclusion of which is that VCs are really only interested in companies that could potentially IPO or sell for at least several hundred million dollars. One variation on that line of logic which I think startups/entrepreneurs oftentimes...

• Essay

Our Job is Not to Make Money

Let’s say you pitch a VC and you’ve got a coherent business plan and some thoughtful perspectives on how your business scales. Does that mean you get the venture capital investment that you so desire? Not necessarily. There could be many reasons for a rejection, but one that crops up a great deal is not anything intrinsically wrong with a particular idea or team, but something...