Slugging Percentage vs. Batting Average: How Loss Aversion Hurts Seed Investors

Conventional wisdom is that venture capital returns follow a power law: a very small number of investments generate a majority of a firm’s returns. This belief is cult-like for seed investors who partner with startups at the earliest stages in the company lifecycle. Given these beliefs, you would think seed investors would optimize their investments…

WhatsApp, Instagram, Snapchat, Nest and Why This “Bubble” Has More Legs

After any large acquisition, “bubble talk” begins immediately. The skepticism generally centers on why a certain company was acquired at such a high revenue or earnings multiple. However, what I find most interesting about this acquisition is not digging into the financial metrics but rather the story the acquisition price per employee tells about the…