The Power Law: Venture Capital and the Making of the New Future

There are some phenomenal products in some of the companies that were overfunded and are haunted by past decisions. The valuations at which these companies raised capital set them on the wrong path - a path that fails to attract and reward critical talent, a path that incentivizes excess expenditure for growth at the expense of structuring a busine... See more

Turns out research, development, manufacturing, and distribution of physical products is capital intensive, and that alone has kept a lot of early stage capital away from investing in such ideas. A decade or so ago, biotech early stage investors innovated by blending Series As and Bs into one bigger financing round to enable biotech startups to hav... See more

One reason why funding follows the markets is that venture capitalists themselves rely on funding from limited partners, the entities that invest in VC firms. LPs need to keep their portfolios balanced between public market securities, like hedge funds, and private markets, like venture capital. When the stock market crashes, their venture capital

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