Advice to Startup Founders and Employees: Strength Doesn’t Always Come in Numbers
chamath.substack.com · 2,063 words · saved by 1 readers
The potential perils of following the crowd in venture capital during a down market
The narrative fallacy in Silicon Valley, and venture capital broadly, is that venture investing is an artisanal business, made up of good “pickers” that have a nose for special founders, and at times, are known for putting intangibles above prudent risk management. The reality is much more complicated. Very few funds actually drive returns in the venture industry – specifically, the top 10% of funds account for roughly 75% of distributed VC returns. The industry as a whole has typically followed the pack leaders, investing in many of the same startups and areas of the technology industry,…
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