The Venture Mindset: How to Make Smarter Bets and Achieve Extraordinary Growth

build on existing technology and business models or introduce a change to an existing product or service. We call this middle part of the pyramid “adjacent innovation.”

Disagreement is your best friend in this case.

A second flaw we regularly observe is all-or-nothing behavior among large companies, in striking contrast to the VC principle of diversification with many small bets.

not from the inside but from the outside.

venture capitalists are causally responsible for the launch of one-fifth of the 300 largest US public companies in existence today. Moreover, they estimate that three-quarters of the largest US VC-backed companies would not have existed or achieved their current scale without VC support.

VCs have adopted a home run approach. They expect to fail most of the time, but when they win, they win big.

Don’t hide risks. Bring them to light early on.

Smart VCs know they cannot reliably pick winners. Instead, they spread their bets by diversifying.

People escalate their own commitments, not someone else’s. We’ve also noticed that different organizations respond to this