Harvard Business Review: How Cloud Computing Changed Venture Capital

From Harvard Business Review “Venture capitalists essentially invest in startup ‘experiments’, and subsequently provide more funding to the experiments that work, so that they can run more experiments. This leads to many failures (roughly 55% of startups) and a few successes (6% return > 5x the total amount invested).  So an innovation that changes the cost of experiments changes the landscape for venture funding.”

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