Monday, October 5, 2009

Why venture capital is like race car driving

A new piece I wrote just issued

Here's the opening paragraphs

I’ve sometimes described the process of funding high-growth ventures as akin to race car driving. So buckle up — I’m about to wear out the tires on this comparison.
A founder creates a concept car, fuels it with capital and sweat and races for market leadership. If the founder is also the car’s driver, then the investor is both a fueling station and a co-navigator — sitting, like all navigators, just to the right of the driver, on the company’s board of directors, for example. Growth companies consume capital at a rate that requires refilling the tank every 12-18 months over a five- to seven-year period.


more at the link above....

No comments:

Post a Comment