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

[@entreprenuership_opportunities]

What are the key factors needed to become a unicorn? We’re sharing Professor Ilya’s latest research! Check out the through the link 🦄: www.patreon.com/theventuremindset

[@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.

[@PlasticCant]

And they bias towards backing stereotypes of founders.

[@johanngross6953]

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

[@ndotnanda]

"Become a failure champion" - Great advice and motivation

[@kokits]

i sense a gambler here

[@ANA-db9yn]

😂😂

[@WealthyChronicle]

The 'prepared mind' concept is gold. Preparation isn’t luck-it’s strategy, and strategy wins in the end. Being ready to pivot at the right moment is crucial. 🧠✨

[@Selftaughtdad]

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

[@gerrythomson5482]

​@davidc4408 How do you do that?

[@vcsyc5490]

when you shortlist startups and invest in them, and you make homerun on 1 out of 20: 1. in world of finance its called persistence 2. in world of regular people its called gamble. thats because regular people cannot afford to make so many unsuccessful investments before one hits homerun.

[@sandeshchahar8447]

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

[@entreprenuership_opportunities]

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[@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.

[@PlasticCant]

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.

[@kawabunga1029]

Great point, my friend! I remember a man named Richard Lustig who has won lotteries ~7 times and even wrote a book about how to increase your chances of winning the lottery. However, he apparently uses a lot of his winnings to purchase more lottery tickets. Depending on how you see it, you could position that as a great strategy, or just call it obvious... That said, I do think that looking at the lottery analogy with this info about Lustig works perfectly with what Ilya Strebulaev said about VCs looking only at home-runs and not at failures.

[@rakeera]

But there is learning effect playing a role

[@harikrishnanchandramohan4209]

If 1 out of 20 attempts make 100x, its basically a 5x, which they could make it in a stable large cap at the right valuation with zero downside.

[@apex-lazer]

I am now ready to subdue the universe ❤

[@jimparker880]

Thank you Professor!

[@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

[@stanislavsuhanov5434]

Emma, your explanation of candlestick patterns is on point! This video really helped me understand how to identify trends better. Keep up the great work 🔥

[@wyko]

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

[@CREATIVECOMM.]

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

[@HassanAmin77]

How many or what percentage of top VCs are Stafford MBAs or MBAs from any of the top business schools ?

[@ikesopuru3114]

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

[@ariyanitiara_]

wow, thank u so much for this. i've learned many fruitful insights!

[@mariyanantony6554]

A man is a child by birth fool by life 🧬 and when he dies he is legend that is history

[@sputnik8543]

Power Law Distribution is all you need to know about VCs

[@bigbawsdogg]

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

[@PatrickDwyer-k9u]

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.

[@TheDigcta]

Very informative and gives a whole different perspective on what happens behind the curtains in the word of VC and startups

[@b-xs4iq]

this is exactly what I am looking for... thanks!

[@williamjames3519]

John Jack Bogle had already closed this intellectual debates & the solution is called " Indexfonds or better ETFs". In addition, he proofed it by creating Vanguard, one of the greatest & successful enterprise in the investment world. From my point of view, VCs vibe thus continue to exist just because of the intrinsic game aversion & ego of human. My advice to all of you guys is - in contrast to the telling-stories of Mr. Prof. - nobody can predict the market ex ante, and the market is smarter, quicker - when it comes to information treatment and asset pricing - than the average of all the market participants. Therefore, any tentative to try to outperform the market is either gamble or luck.

[@whoadog8725]

A great example of what Nassim Taleb calls IYI.

[@SB-hv1kd]

It’s easy to think only about gains when you are using debt to do acquisitions and making the end customer bear the costs by increasing the price.

[@kristrinity9429]

5 minutes in and no big takeaways. Just get straight into the valuable content thats what people are here for.

[@theCollectiveEU]

talking about the lean start up modell..

[@mariyanantony6554]

Attitude is value

[@soumen_das]

It is definitely gamble

[@ashali2226]

Its all about your Unfair Advantage!

[@punjabeeplaya]

How rich kids play around with other rich kids' money and are never held accountable during their whole lives.

[@vkvarman2422]

If that's your take away, then feel sorry for you

[@rockz1901]

Great insights, Blurbs part very helpful

[@CastleHassall]

thanks for talking about your perspective on decision making.. i have good ideas but i tend to get ripped off when I'm trying to develop them and people take my ideas and use their contacts etc to develop them.. been some world changing ideas i had too.. any ideas on how to not get ripped off??

[@nirmalhruday1]

Blurb?? I don't get what it means? Is it a short summary about you and your company?

[@ellliamelli3867]

Thank u!!! ❤❤❤

[@odetoazam]

Although i hear that reaching different people at a firm may engender different responses.

[@explorerryan]

Very insightful thanks 🙏

[@febinphilips7505]

Hasn't anyone noticed the amount of cuts in the vid while he's speaking...that too in the same sentence. Is it an editing thing idk abt?

[@Ahmed-nx1bg]

Wonderful video

[@chazhovnanian6897]

Amazing video!!!! ❤

[@SIMARJEETMEHTA]

Nice. Please give us examples of good blurbs. .

[@shrajalshrivastav4360]

" Knowledgeable " How to reach out sir

[@dee24298]

Amazing talk

[@ishanarora5764]

Brilliant sir✌

[@jeffharmed1616]

Nice work thanks

[@Dawn2Dust]

Did all billionaires around the world study in Stanford, Oxford, Berkeley or Harvard???

[@shaleenchowdhary]

Thank you very much

[@mintusaren895]

Valentine what does it mean?

[@juanritanjaya6254]

Story might be a bit embellished. Mountain View is a small city but headquarters of Google. I doubt sequoia cant find their way to whatsapp office using google maps relatively easily. But hey, good story sells

[@pierceparker]

Can a blurb be written by AI? It seems it's best job for AI. By the way, I am so glad that I am a failure champion. This video really made me feel good. I will try to fail again.

[@tcveatch]

That claim, that VCs say No almost all the time, is extremely offensive to a person who has pursued VC funding without success. In reality they NEVER say no. They equivocate, they say Maybe, they propose fairytales, they never ever ever say No. Having studied this question, there is a great negotiation reason for never saying No, which is an asymmetry between VC and founder. The VC is in no hurry while the founder is bleeding out his or her own necessarily limited resources and therefore is in a great hurry. Not Saying No puts time Pressure on the founder and makes a better deal for the VC because if a deal is made their counterparty is more desperate. In short it is a manipulative destructive and frankly disgusting activity in which the VC is happy to see you grind your baby into paste and let it die,while bankrupting you, all for the benefit of some Imaginary future deal with someone else. A VC who has any moral fiber WILL say no a lot. But no actual VC I ever encountered on Sand Hill Road ever did in reality.

[@열정부부-z1q]

자동 자막말고 영어 자막도 보고싶습니다ㅠㅠ

[@SilentReviewer]

Is he actually saying “blurp”..?!

[@Productish]

innovation times

[@ThevaThevarajah]

Yes I join

[@mariyanantony6554]

Every one likes to make history but no one like to be traditional

[@JohnHall]

Because these ongoing firms manipulate the market.

[@billballeza377]

The best decision one can about an MBA, is not to spend the money or the time to earn one.

[@SIMARJEETMEHTA]

No it is a gamble. If there really was a success formula VCs would not fail 95% of the time (his numbers that only 1 in 20 get that home run). If a 95% failure rate isn’t a gamble then I don’t know what is. Google was turned down repeatedly by some of the biggest VCs. There are so many such stories. VCs really can’t predict because the future is always unpredictable no matter how much mind you put in to it. The strangest ideas may work while slam-dunks do not. This remains a gamble. A VC will admit that after a few drinks.

[@InStevenWeTrust]

A gamble implies the outcome is completely random. If so, certain firms would not demonstrate consistent outsized returns such as benchmark, sequoia and Horowitz. The strike rate is just one leg of a three legged stool in determining EV and ultimately, profitability. Do you know what the other two legs are?

[@ownboss4221]

how to get 18 000 vcs mail address

[@mariyanantony6554]

Venture capitalists is mega company star's

[@mariyanantony6554]

Artificial methodology is venture capitalists thought innovation

[@varlord1]

Impressive advice. Thanks for sharing 👍

[@charlesdarwin5185]

Read the "Accent of Money". By Naill Ferguson.

[@vidya014]

Failing is a filtering process.

[@MrSarathcool]

👏🏻👍🏻

[@MurthyMurthy-wb7nx]

Witnesses by respected government

[@christianjosepelaezhuertas9548]

says it is not gambling, and then explain gambling

[@IsmaelKizito]

finally finding the comment I was looking for. Prof tried to frame us . Not to us prof not to us

[@Franklin7702]

Круто👍

[@nyakarundi]

what i would to know if he reasearch on why women and minorities are less than 4% of the VC world

[@biloo2007]

Am I the only one to feel, he sounds like Jack maa?

[@moonstone468]

By the way, I know his nephew personally

[@rogersri]

there is no one size fit all - everyone talk only about giants - there are many more unknown success stories not necessarily wall street darlings but create social impact on large scale

[@thomasabraham3291]

If everything body is fooling you How can you make decisions

[@thisricardopalma]

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

[@erikaperu73eg]

👍

[@BeingHuman-pl8sm]

One thing is for sure. Stanford and Harvard want to admit students who have already achieved so much that they can survive without these institutions. Thats how these institutions reputation is built. I am not sure what to call this admission strategy.

[@zoneaxa3240]

5:50

[@OMNI_INFINITY]

*Honestly as a VC partner, I would question the validity of what he says simply based on how laughable his attempt at clothing "swagger" totally conflicts with academia and his face type.*

[@Omikoshi78]

TLDR: Have a lot of money to win at roulette by placing many bets. Focus on 36x win and less on 2x wins.

[@shogunzalo]

So it is a gamble

[@AhmedAdel-vm9ku]

Shallow content - more close to human development

[@mariyanantony6554]

A major development of start up is artificial intelligence

[@mitchellsmith4601]

What a bunch of BS. The vast majority of companies funded by VCs fail. It’s pure luck, no skill involved.

[@mariyanantony6554]

Industry revolution information revolution technology revolution and intelligent artificial intelligence revolution

[@DataTranslator]

I find it intellectually inconsistent that he never mentioned his selection bias for successful VC firms. I think we could also learn from the VC firms that failed.

[@Jakewich42]

This guy provides zero insightful knowledge. Waste of time listening to simple fundamental ideas dressed up in conceptual speak.

[@CrisTina-tp2jg]

Sorry mate, I find your presentation boring. I think your voice is a bit monotone just feedback not criticism. You are more successful than I am and then I’ll ever be

[@ac-uk6hs]

So Harvard Yale and Stanford have a big plagiarism problem and instead of punishing plagiarists they reward them with 1 million a year teaching jobs. So I'm sorry right when you said Stanford researched I lost any faith in this

[@100iliasm]

he speaks one hour to say nothing.....

[@rodrigobelinchon2982]

But is he a successful VC or just a book worm doing theoretical research?

[@princesavage2234]

They all teach from the same books

[@OMNI_INFINITY]

*And yet he still decided to dress that way.*

[@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)