Access Quote by Ben Thompson
“At a basic level venture capitalists are arbitrageurs: they have access to more information than those with the capital, and access to more capital than those with information, and they profit by exploiting the mismatch.”
About This Quote
Source Article: Stratechery, “The Economics of Venture Capital”, 2018
Venture capitalists profit by exploiting information and capital asymmetries between themselves and entrepreneurs.
In simple terms: VCs use info and money advantage.
Recognize and address asymmetries.
Themes
Mood
Type
When to use this quote
- startup fundraising
- investment decisions
- due diligence
Key Concepts
Questions to Reflect On
- How can founders level the playing field?
- What ethical limits exist for VCs?
Overreliance on asymmetry can ignore value creation.