Beyroutey: Abundant capital breeds lazy thinking and flawed rapid expansion
Jesse Beyroutey · 20VC: IA Ventures' Jesse Beyroutey on Game Theory and How It Impacts Investor Mindset, How To Avoid "The Pressure To Deploy" Today In Venture & Why Ownership Is The Single Most Important Parameter When Investing · Jul 22, 2019 · at 13:02
Jesse Beyroutey, Partner at IA Ventures, critiques the idea that deploying massive capital automatically creates a defensible business moat.
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“Having a ton of capital can also cause a form of Just sort of lazy thinking where, for example, companies that have credibly high access to cheap capital and not enough discipline or first principles thinking might end up choosing to vertically integrate or to expand internationally very, very quickly on the theory that somehow adding scale with capital equals power.”
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