Gupta: Venture success requires cutting losers instead of funding weak links
Naren Gupta · Naren Gupta on the journey of Nexus Venture Partners · Aug 30, 2020 · at 23:41
Naren Gupta, co-founder of Nexus Venture Partners, outlines his fundamental investment discipline regarding capital allocation across winning and struggling portfolio companies.
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“Second thing I would say also is that the key to success in venture funds is to not throw good money after bad. I mean, if things are not working, we just need to call it a day. And it's doesn't, it's not a reflection on the entrepreneur. It's just a reflection on how things are going and maybe start all over again, same team, maybe, or, you know, same company, even I think, and on the other hand, also double down on our successes. You know, that's a pretty, pretty important part of the venture capital. Don't keep feeding your weak links, fix the weak links before we before you feed them. But you know, Try to leverage your successes into even bigger successes.”
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