I think the development of the venture capital system has…
“I think the development of the venture capital system has been an example of something which is a successful improvement in risk-bearing. It doesn't exactly remove the risks at the beginning, but at least creates greater rewards at a slightly later stage and therefore encourages, say, small companies to engage in technologically risky enterprises.”
About This Quote
This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation.
Venture capital improves risk distribution by shifting early‑stage risk to later stages, offering higher rewards and encouraging innovative startups.
In simple terms: Venture capital moves risk forward, rewarding innovation.
Key Takeaway
Leverage venture capital for high‑risk ventures.
Themes
risk management
innovation
finance
Mood
analytical
optimistic
Type
economic insight
investment philosophy
When to use this quote
- startup funding
- technology development
- investment strategy
- policy design
Key Concepts
capital allocation
entrepreneurial finance
risk‑sharing
Questions to Reflect On
- What safeguards protect early investors?
- How can risk be further mitigated?
A Different Perspective
Risk still remains high for early investors.