Sol Orwell of Examine.com spoke at Big Omaha 2016 about his life as a immigrant, turning down investors, and work-life balance. He also discussed how venture capital is like a lottery.
“In the average venture fund 2 percent of the companies generate 98 percent of the revenue,” said Orwell. “These are the things we never consider.”
Orwell also explains that the vast majority of the fastest growing companies in the country started without any outside investment.
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“It comes down to this: 84 percent of high-growth companies did not take any VC,” said Orwell.
Orwell compares being VC-funded to being a celebrity.
“You are always hear about those top two, three, four, five celebrities that made it, but you never hear about all the others,” said Orwell.
Venture capital takes away your control which ultimately leads to greater stress, according to Orwell.
“People think that venture capital is free money. It’s not. it’s debt,” said Orwell. “They expect to be paid before you get your money.”
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