TLDR:
– VCs often fail to reach their goals and most VC-funded ventures fail
– VC-valuations are not based on actual revenues, net income, or cash flow
In the article “4 Key Strategies To Maximize VC Gains & Reduce The Negatives,” Dileep Rao discusses the phenomenon of “Unicorpses” in the business world. This term refers to ventures that were once valued at over a billion dollars by VCs but eventually turn into failures. The article delves into the commonality of these failures in the VC world and the strategies entrepreneurs can use to reduce the negatives and maximize gains.
The key takeaways from the article include:
- Unicorpses are based on hype and hope, so it is essential to create substance in ventures
- Working with top VCs is more likely to lead to success, as many lower-tier VCs invest in deals that do not become unicorns
- Entrepreneurs should focus on skills needed for growth and become U-Builders, not just U-Starters
Rao emphasizes the importance of encouraging entrepreneurs to focus on acquiring the skills needed for success rather than hyping up their ventures for VC funding. By working with top VCs, focusing on skill development, and learning to delay or avoid VC when necessary, entrepreneurs can increase their chances of building successful ventures in the long run.
