Startups Destroyed By Venture Capitalists

Posted on March 12, 2017November 27, 2018

Can venture capitalists destroy their startups? Although the statement may sound counterintuitive, it is certainly possible. The primary reason for this is the high-risk, high-reward nature of venture capital.According to research by Josh Lerner from Harvard Business School, only 20% of VC funds had better than 20% returns and nearly one in five funds had negative returns. Added to this is the pressure on venture capitalists to show high returns. The tools at their disposal to do this consist of an array of stochastic parameters and metrics that may not … Continue reading “Startups Destroyed By Venture Capitalists”