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90 Lessons from The Power Law: Venture Capital & The Art of Disruption
Nothing fancy here. Just 90 highlights — lessons, learnings, quotes, maxims, stats — from my reading of the awesome The Power Law: Venture Capital and the Art of Disruption by Sebastian Mallaby.
This is a great book for both venture investors and startup founders alike, and the following extracts might be of value to you.
If any of this resonates, get the book!
Vinod Khosla’s investment test:
- Is there an obvious reason this WON’T work?
- Does the founder have what it takes?
- Will this generate a big profit (10X+)?
Power law flywheel -> winners advance exponentially, fuel further opportunity and growth
98% of the time the public market (S&P500) is stable (between 1985 and 2015 98% of the time less than 3% daily movement)
75% of Y Combinator's gains come from 2 of their 280 startup investments!
Best investment in VC fund equals or bests entire rest of the fund investments.
VC is a grand slam business — Bill Gurley
