Investors' Principles of Silicon Valley Taught in Stanford MBA | Ilya Strebulaev

Today, we've invited Professor Ilya Strebulaev, who has taught and researched venture capital at Stanford MBA for 20 years. While studying Silicon Valley investors, he focused on those consistently making successful investments. He defined this concept as the 'venture mindset.' What decision models do Silicon Valley investors use, and how can we apply them to our lives? Let's find out in the video!
To purchase 『The Venture Mindset』: a.co/d/05vv5Jaq
00:00 Intro
00:49 Chapter 1. Who Are the Venture Capitalists
03:34 Chapter 2. The Venture Mindset
11:34 Chapter 3. Tips to Write a Must-Read Blurb
15:17 Chapter 4. Strikeouts Are Strikeouts
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Subtitles for this video were created using [XL8.ai](xl8.ai/) machine translation.

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[@NanheeByrnesPhD]

My impressions, based on anecdotal stories from those who've sat across the table from VCs, paint a quite different picture. Contrary to being visionaries with a 'prepared mind' for future innovations, willing to strike out in the ambition of hitting home runs, VCs are often driven by herd mentality, preferring to be second backers rather than first. They're frequently motivated by FOMO (Fear of Missing Out), chasing hot sectors regardless of long-term viability. Instead of being open to cold calls from innovative founders, many VCs rely heavily on their networks for investment opportunities, potentially missing out on groundbreaking ideas.

[@edgaremmanuel4647]

You make an absolutely great point 👌. Do you think this behavior is due to the fact that for them it's less riskier backing an idea that hasn't gained enough traction like: subsequent fund rounds, revenue, solid customer base etc? Also its Validation when you raise money with other vcs. Like I've listened to founders who raise money, not because they need it but just validate the inner feeling they are headed in the right direction.

[@edgaremmanuel4647]

Thats why most pre-seeds are by angel investors and/ incubators like first round capital. Id love your opinion 😊 I recently came across this year's YC batch class and most of it were AI companies so it leans to FOMO narrative

[@dinoscheidt]

Nanhee is correct, however, as someone who also set on that table, including the other side: A VC has their LPs in mind. These LPs are also just humans, prone to tribal thinking, heuristics and agendas. So paradoxically it is absolutely logical, to take start-ups that fulfill that “buzzword, FOMO, hype” train, because that is also what the LPs signed up for. And these LPs, they get the money from the market. And there, the consumer buys “AI” ETFS and “emerging tech” indices. It goes round and round. The frontal lobe in the human brain is very young… so as a logical thinking human, it is illogical to expect humans to behave logically. If you deal with humans, even great ideas need to go through a tribal, trust and emotional filter…. A realization I as a nerd had a hard time with, but it can also be ridden like a wave 🌊❤

[@alvarojneto]

This doesn't actually seem fair. Both pictures are not necessarily in contradiction. One must be able to weed out the noise, too.

[@Khobalt664]

And they bias towards backing stereotypes of founders.

[@ndotnanda]

"Become a failure champion" - Great advice and motivation

[@johanngross6953]

"To achieve home runs, you need to fail" - Ilya Strebulaev Thank you for the great interview!

[@Khobalt664]

He’s not accounting for survivorship bias. For example, in that lottery analogy, even if someone wins twice, it’s still the lottery. You shouldn’t expect them to be more statistically predisposed than most people to winning a third time.

[@thyagarajesh184]

This theory of venture capital is all fascinating. But in real.. just talk to a few investors. It is a very difficult business; extremely stressful.

[@siddarthseloth6250]

Thank you @EO, for this amazing video, by Professor Strebulaev. Amazing lesson

[@santiagomerlot]

yes..my thoughts exactly.

[@sitrakaforler8696]

00:01 Venture Capital is not a gamble 02:02 Successful VC firms excel in making high-return investments over time 03:56 Los inversores de riesgo se centran en el éxito a largo plazo, no en el fracaso a corto plazo. 05:40 La importancia de experimentar, fallar y perseverar en la búsqueda de jonrones en la vida. 07:32 La importancia de tener una mente preparada en el mundo de la inversión en Silicon Valley 09:26 Venture capitalists use fast and slow lanes to filter deals. 11:23 La importancia de construir un informe inteligente sobre tu startup 13:28 Key principles for pitching to investors 15:26 Fracaso constructivo ayuda a aprender y mejorar

[@apex-lazer]

I am now ready to subdue the universe ❤

[@AndyAttica]

So go to Stanford mba -> become a VC -> invest in juciero -> fail because you didn’t realize you don’t need the $400 machine to squeeze and apple sauce packet that children can do such like their kids size yogurts. Awesome, great advice

[@davidc4408]

Skip the over priced MBA. Do a specialized MAsters

[@jimparker880]

Thank you Professor!

[@CREATIVECOMM.]

Wow what an awesome content. This is the best lecture I’m receiving on this subject. Thank you

[@wyko]

Thank you for the videos, Thanks @Ilya Strebulaev and @EO

[@ikesopuru3114]

Wow.. this is awesome. Thanks for sharing prof.

[@sandeshchahar8447]

Thank you so Professor Ilya Strebulaev for sharing your experience and wisdom with us I learn a lot from this video.

[@kknn523]

The goal of venture capitals is to look at talent people's business, and invest in 100s of their businesses, and eventually 'two of a batch of one hundred' pays out a huge return. It's literally just having potentially lucrative businesses, which they just invest into the better ones of the bunch.

[@shaleenchowdhary]

Thank you very much

[@soumen_das]

It is definitely gamble

[@chazhovnanian6897]

Amazing video!!!! ❤

[@ellliamelli3867]

Thank u!!! ❤❤❤

[@kuman9536]

What about decisions ?

[@MrSarathcool]

👏🏻👍🏻

[@bigbawsdogg]

I would avoid taking advice from someone whos never been a venture capitalist or worked for a startup

[@user-ce2yc4no1f]

It is incredibly difficult! Some of these things hemorrhage cash for years, before they even break even. I think this "Facebook" company isn't profitable yet.

[@thisricardopalma]

They have been stuyding an abstract mind concept called failure for 20 years?!! 😂😂😂😂😂

[@MurthyMurthy-wb7nx]

Witnesses by respected government

[@user-ss5qd5dj2o]

자동 자막말고 영어 자막도 보고싶습니다ㅠㅠ

[@ownboss4221]

how to get 18 000 vcs mail address

[@varlord1]

Impressive advice. Thanks for sharing 👍

[@AhmedAdel-vm9ku]

Shallow content - more close to human development

[@davidc4408]

This guy needs to do some vc investment in his belly. 100x return by diet and gym😂

[@DanNistorx]

Become a failure champion 🏆 😢

[@MurthyMurthy-wb7nx]

Respected sir ,, register entire world stock market and number of shares registered,, gyarenttee by Americans congress,, white house,, remove company layings eggs utras just like one buy get one free remove company utras,, devidents only account pay only ,, company profit is not more than 24 percent of annual on opening balance of principal amount,, 10/07/2024 @ 1/28 am

[@niknabernik4700]

Shame on him, deman for his job is so high!! They should cooperate with real businessmans in POLYTECHNIC style (you're welcome mybe)

[@hellonihaocomoestas]

This guy tries so hard to talk like donald trump