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How VCs Can Overcome the “Winner’s Curse”

April 21, 2022
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It is common for businesspeople to make excessively rosy predictions of their prospects for success. When entrepreneurs offer overly optimistic forecasts, their investors end up disappointed. But investors can contribute to this problem by encouraging founders to be optimistic. Venture capitalists often push founders to set big, hairy, audacious goals. When potential investors demand a promise of glorious revenues in five years, founders often oblige.

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