STOP PRESS! Venture funds want highest returns possible. Shun early stage.

Intel Capital point out, quite rightly, that venture funds may be wary of start ups and early stage ventures in the future. This is simply because it is very hard to make money from them. As a general rule, the earlier stage you invest, the more likely you are to lose your money. The later you invest, (and the more money you have), the less skill is required to make your money work. In our view, the emerging kings and queens of the early stage investment world will be experienced entrepreneurs who have made money on multiple projects and are now bringing more than cash to a project. They will however have to be prepared to make mistakes that cost them along the way.

Reblog this post [with Zemanta]