Written by Claudia Zeisberger & Ian Potter at INSEAD
In January, Sequoia’s Michael Moritz, wrote in the FT that the venture community in Silicon Valley needed to wake up to the competition posed by Chinese technology companies. His warning may have come too late. But it should not have come as a surprise: for those paying close attention, as far back as 2013, President Xi was on record saying “Our technology still generally lags that of developed countries, and we must adopt an asymmetrical strategy of catching up and overtaking”. …
written by Claudia Zeisberger & Kamal Hassan
No matter your level of experience, early-stage investments are considered high-risk & a gamble. Why not treat it like one?
The private equity model is well established. You analyze hundreds of companies and opportunities in detail and buy a minority or majority stake in a good company to manage it over a few years with the goal of achieving a profitable exit. Rarely do PE funds deal with write-offs, and PE-owned companies in distress are known to do better than their publicly listed peers.
The venture capital (VC) model follows the same approach…
Professor of Entrepreneurship & Family Enterprise at INSEAD & Founder of GPEI; Interests: Venture Capital, PE & all aspects of Risk taking