Entrepreneur or Venture Capitalist? The real investors into the economy is not the venture capitalists, but the entrepreneurs. Venture capitalists and angel investors give money to some early startups, however they take too much of the equity and the control. Even though the VCs claim to be know-it-all, the fact is that it's not true. The bad venture capitalists vampire the brilliant entrepreneur, mold them to where they want them to be. However, an entrepreneur in their minds is below them, hence they never will give the respect of brilliance. If you ever questioned their brilliance, chances are they will show you the number of startups they have invested in. Investment Strategies: The venture capitalists invests in a whole bunch of startups. Usually, they are following the herd, where most of the other investors are investing. They don't have time to do thorough due diligence, hence they follow a pattern of negation. Negate everything. In Hindu Vedanta, this pattern is nothing new. Neti Neti - Not this, not this. The venture capitalists try to get to the early stages of startups, preferably seed stage. This is where the most bang for the buck is. Recently, I am seeing investors that invested in early stage startups. One of the startup went public, e.g. IPO, however since then, they have created incubators for a volume of deals. It turns out all their deals failed, so now they are waiting for the lockdown period to be over on the IPO company, so they can sell that stock, and cover their loses. This means the incubator with hundreds of startups didn't perform well. So the investor had to go into own pocket to cover the loses and save the incubator from dying. Divide and Conquer: The divide and conquer is a computer science algorithm which is full suited to solve this problem. Take a sample of ten startups, and invest evenly. The ones that perform well, double down. Make sure to spend lots of time with these startups. Startups are not magically created, they need to be build. The Twitter founders had angel investors, that sat with them through, helped build the business. There was passion there, that still exists. Take for example Chris Sacca, who was the earliest angel investor to the founders. Divide and Conquer: The divide and conquer is a computer science algorithm which is full suited to solve this problem. Take a sample of ten startups, and invest evenly. The ones that perform well, double down. Make sure to spend lots of time with these startups. Startups are not magically created, they need to be build. The Twitter founders had angel investors, that sat with them through, helped build the business. There was passion there, that still exists. Take for example Chris Sacca, who was the earliest angel investor to the founders. Measuring Growth: Measuring growth is not an automatic formula and it needs to be studied. If the startup is truly disruptive, the model needs to be analyzed thoroughly because it wasn't done before. If the idea was already there, then that means there are copy cats, that are just stealing them from the other founders that initially came up with idea. The loss is never to the founding team, rather the copy cats because they get stuck, after reaching any level of success. They freeze, not knowing what to do next. The venture capitalist copy master is more than eager to provide quick answers, just to make self look good. In due time, the startup dies.