venture capital Archives | Wealthfront Blog Personal Finance & Investing Insights Fri, 03 Mar 2023 17:53:16 +0000 en-US hourly 1 https://www.wealthfront.com/blog/wp-content/uploads/2019/09/cropped-wave-logo-transparent-hi-res-500x500.png venture capital Archives | Wealthfront Blog 32 32 Demystifying Venture Capital Economics, Part 5: When Should New Entrants Partner with Incumbents https://www.wealthfront.com/blog/venture-capital-economics-part-5/ Wed, 25 May 2016 18:50:26 +0000 http://www.wealthfront.com/blog/?p=5537 At some point in its evolution, every startup faces the question of whether or not it should partner with a large company to accelerate its growth. On the surface, partnering almost always looks like a great idea. Unfortunately, the reality is seldom as rosy. Partner Motivation: The Chesbrough Framework In my experience, understanding your potential […]

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]]> Demystifying Venture Capital Economics, Part 4: What Analysts Get Wrong About Innovation https://www.wealthfront.com/blog/venture-capital-economics-part-4/ Thu, 28 Apr 2016 00:09:48 +0000 http://www.wealthfront.com/blog/?p=5513 In 2014 our CEO, Adam Nash, caused quite a stir when he said “In the next 10 years, everyone will be using some form of automated investment service.”  Frankly, many market analysts thought he was nuts. Twenty-five years in the venture capital business leads me to believe Adam is right. As a matter of fact, […]

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]]> Demystifying Venture Capital Economics, Part 3 https://www.wealthfront.com/blog/demystifying-venture-capital-economics-part-3/ Tue, 02 Dec 2014 17:20:23 +0000 http://www.wealthfront.com/blog/?p=4869 The funding of almost every new and successful technology market can, to the uninitiated, have the appearance of a financial bubble. A tsunami of venture capital flows into hot new markets at what appear to be ridiculous prices. Amazingly, the capital invested in the market winners is almost always justified. A few other companies will […]

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]]> Demystifying Venture Capital Economics, Part 2 https://www.wealthfront.com/blog/venture-capital-economics-part-2/ Wed, 24 Sep 2014 17:43:30 +0000 http://www.wealthfront.com/blog/?p=4733 One of the most challenging things for people outside the technology world to understand about venture capitalists is why they are willing to fund companies that operate at a significant loss. After all, classic security analysis teaches us companies don’t have any value if they can’t produce a profit. The operative word in that statement […]

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]]> The Impact of Dilution https://www.wealthfront.com/blog/impact-of-dilution/ Tue, 26 Aug 2014 16:52:47 +0000 http://www.wealthfront.com/blog/?p=4593 Editor’s note: Interested in learning more about equity compensation, the best time to exercise options, and the right company stock selling strategies? Read our Guide to Equity & IPOs Most people don’t realize that the percentage of the company they are initially awarded when they start a new job is not  what they will ultimately […]

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]]> Demystifying Venture Capital Economics, Part 1 https://www.wealthfront.com/blog/venture-capital-economics/ Thu, 19 Jun 2014 18:24:26 +0000 http://www.wealthfront.com/blog/?p=4510 The other day my co-founder, Dan Carroll, asked me a number of questions about Venture Capital returns because he was stunned by the valuations of some recently announced deals. After I answered the question, Dan and a few colleagues who were within earshot encouraged me to share my perspective on the subject because it is […]

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