What Venture Capitalists Can Teach Companies About Decision-Making

HBR IdeaCast

Harvard Business Review

Leadership, Entrepreneurship, Communication, Marketing, Business, Business/management, Management, Business/marketing, Business/entrepreneurship, Innovation, Hbr, Strategy, Economics, Finance, Teams, Harvard

4.4 • 1.9K Ratings

🗓️ 28 May 2024

⏱️ 29 minutes

🔗️ Recording | iTunes | RSS

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Summary

Venture capital firms notoriously embrace risk and take big swings, hoping that one startup will become a monster hit that pays for many other failed investments. This VC approach scares established companies, but it shouldn’t. Stanford Graduate School of Business professor Ilya Strebulaev says that VC firms have proven best practices that all leaders should apply in their own companies. He explains exactly how VC’s operationalize risk, embrace disagreement over consensus, and stay agile in their decision-making—all valuable lessons that apply outside of Silicon Valley. With author Alex Dang, Strebulaev cowrote the new book The Venture Mindset: How to Make Smarter Bets and Achieve Extraordinary Growth and the HBR article "Make Decisions with a VC Mindset."

Transcript

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0:00.0	Got 30 minutes?
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0:19.1	Before we get to the episode,
0:20.9	I have a favor to ask. Would you rate and review HBRAD a cast? It only
0:26.7	takes a few seconds and it's one of the best ways to help new listeners find our
0:31.2	show. So open up Apple Podcasts or Spotify and leave us a five-star
0:36.2	rating and review. And thank you. You're going to. Welcome to the H for thriving and uncertainty,
1:15.0	for their ability to see an opportunity where no one else does.
1:19.0	But these qualities get repeated so often,
1:22.0	they kind of become startup cliches. It's easy to forget
1:26.1	the underlying wisdom there and the power is in the details. Take venture capital.
1:32.1	What specifically makes venture capitalists different in their ability
1:36.2	to seek value? And what practical lessons can any organization learn from that? Today's guest is someone who has spent decades
1:44.6	researching the most successful venture capital firms and he's walked away with
1:49.1	findings into what really makes them tick. Ilia Strebeliev is a professor at the Stanford Graduate School of Business,
1:56.9	with technology executive and consultant Alex Dang,
2:00.1	he wrote the new book, The Venture Mindset, as well as the HBR article, Make Decisions with a VC mindset.
2:07.0	Ilia excited to talk to you.
2:09.0	Thank you, Kurt. It's great to be here with you.
	...

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