#status #humans #venture-capital #compound-interest #status-game #business #entrepreneurship Created at 2023-02-02 # [Anonymous feedback](https://www.admonymous.co/louis030195) # [[Epistemic status]] #shower-thought Last modified date: 2023-02-03 07:28 Commit: 0 # Related - [[Business/Entrepreneurship/Fundraising]] - [[Readwise/Articles/en.wikipedia.org - Venture Capital - Wikipedia]] - [[Business/What VCs want]] - [[Business/Venture fund]] - [[Business/Investing]] # TODO > [!TODO] TODO # Venture capital ## Value beyond [[Money|money]]? >The best VCS will give you, either proactively or reactively, a list of all the entrepreneurs they've worked with in the past and ask you to pick a few for reference checks. The best reference checks are from companies that went through hard times, maybe swapped out a founder for another CEO, or even failed, because you will learn from them how the VC handled messy and adversarial situations. >~ [[Brad Feld - Be Smarter Than Your Lawyer and Venture Capitalist]] ## [[Compound interest|Compound]] [[Status game|status]] >VCs who back winning startups acquire a reputation for success, which in turn gives them the first shot at the next cohort of potential winners. Sometimes they get to buy in at a discount, because entrepreneurs value the imprimatur of renowned investors. This self-reinforcing advantage—prestige boosts performance, and performance boosts prestige—raises a delicate question. Is there really skill in venture capital, or are the top performers merely coasting on their reputations? >~ [[Sebastian Mallaby - The Power Law]]