Dave McClure's Lecture at NUGSB

2015-10-01 14:16:44

Dave McClure is an incredible person with his own way of thinking about venture capitalists, entrepreneurship and startups. Dave, in contrast to many VC funds, believes that to be successful you should invest smaller amounts in a larger number of companies. Statistically, he argues, you are more likely to get more wins, and bigger wins, if you have a larger portfolio of companies. Most VC funds try to concentrate their resources in larger amounts in a smaller number of companies. Dave points out that most VC funds fail, and this is a large reason why. He stresses that most VC funds think they are good at “picking winners,” but the majority in fact are not.

dave-mcclure-500-startups
During his talk, Dave mentioned that while he has had some big winners, and a number of pretty good winners, he has also had a number of failures. This is venture capitalism. He believes his method, however, increases your probability that you will get a larger number of winners. Fact is, he has outperformed many venture capital firms.
Dave McClure has an interesting point of view on entrepreneurship. He claims that entrepreneurship has an ever tougher strategy. He thinks that occasionally, you get the big wins, but they don’t happen frequently. His entrepreneurship strategy is not going for big wins and not necessarily going for a global strategy, but going for smaller wins with a more concentrated large market strategy, and he likes e-commerce and digital products. Entrepreneurship for Dave is succeeding against the odds and against failure.

 

Mergen Zhumabay,

FT MBA’16