Interesting Facts About Venture Capitalists

Some interesting things to know about venture capitalists...

+ Venture capital is not about seeking risk, it is about reducing risk - this is very counter intuitive since from the outside it seems as if VCs are risk seekers, when in practice they will do everything in their power to invest in the safest entity they can identify
+ For every startup a venture capital firm invests in, it receives 1,000 business plans, follows up on 100, invites 10 to present, follows up with 2-3 and then invests in one.
+ VC compensation structure has evolved so that the VC no longer has to be successful in order to strike it rich themselves; this is a big part of the problem with VCs today - and just like prices are said to be "sticky" (they easily increase but are slow, i.e. sticky, to decrease), the same goes for compensation packages - it's difficult to knock them back down...

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