Backing young private companies on the understanding that most will fail and the winners are unbounded, so the portfolio is underwritten for one outcome to return the fund. Everything that looks reckless about it - high entry prices, unproven markets, founder deference - follows from that asymmetry rather than from optimism. Its discipline is refusing to average: each new deal must be judged as if the previous nine had not happened.
Why well-run firms lose to cheaper, worse products that enter at the market's bottom.
“Awesome book. May move soon to my Top Ten List. If anything will keep CEOs awake at night, reading this book certainly will.” — Mohnish Pabrai
Source: Mohnish's Bookshelf — Books on Sales & Marketing, entry 66
Recommended by: Jim Collins, Mohnish Pabrai, Aaron Levie and 27 others
Build, measure, learn: test what customers want with small experiments.
Recommended by: Nat Eliason, Sheryl Sandberg, Andrew Chen and 17 others
Subtitled 'Building a Business When There Are No Easy Answers'
“…books I've recommended, highlighted to death, or forced on friends.” — Andrew Wilkinson
Source: Andrew Wilkinson's Bookshelf, neverenough.com
Recommended by: Andrew Wilkinson, Balaji S. Srinivasan and 34 others
Why startups should build something new and own a small market before growing.
Recommended by: Balaji S. Srinivasan, Eric Weinstein and 36 others
Venture capital from Arthur Rock to SoftBank, and why a few big bets pay for all.
Recommended by: Andrew Wilkinson, Anthony Pompliano and 4 others
Customer development: how startups find customers before building the full product.
“Buy it, read it, keep it under your pillow and absorb it via osmosis.” — Marc Andreessen
Source: Book of the week: Best book for tech entrepreneurs this year, blog.pmarca.com
Recommended by: Marc Andreessen, Andrew Chen, Brad Feld and 2 others
Venture financing term by term, for founders negotiating their first rounds.
Recommended by: Patrick Collison, Brad Feld, Gaby Goldberg and 4 others
How venture capital works, from fund economics to term sheets, for founders.
Recommended by: Benedict Evans, Eric Schmidt, Gaby Goldberg and 2 others
Recommended by: Mohnish Pabrai
Georges Doriot, who showed that investing in small, risky firms could pay.
Recommended by: Patrick Collison
Recommended by: Cynthia Johnson
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