The Failure Rate In A Startup Seems Extremely High. What Can VC Do Differently To Reduce Their Failure Rate?

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The thesis determines what can be discovered. — Albert Einstein

Changing the thesis of venture capital will change the outcome. Venture capital has overwhelmingly turned subprime (meaning uniform) over the last twenty years as a result of excessive deal collusion, deal diversification, and risk delusion incompatible with finding outliers.

As a result, the thesis of what venture capital can discover attracts entrepreneurs submitting to said uniform thesis. And uniform innovation has a high failure rate because it is merely downstream optimization of an existing norm with temporal and price erosive value, quite the opposite to the dissent of a new and higher normalization of truth venture capital was initially designed to trace.

So, what venture capitalists can do is to break the norm of their subpriming, with an investment thesis of foresight consistently breaking the norm of hindsight. That will then attract entrepreneurs of a different breed, not the ones who waddle in the pageantry of cheap positivity but instead attracts entrepreneurs who thrive based on vehement dissent to our outdated and highly imperfect past norms.

And an entrepreneur who, amidst controversy, has taken the time to invent a new and higher normalization of truth will not accept a failure rate of more than 50%. Neither should a VC who knows how to latch on to a prime entrepreneur breaking the norm.

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Georges van Hoegaerden
Georges van Hoegaerdenhttps://www.method41.com/georges
Georges is the Founder and Managing Director of method41. From analyzing the workings of policy, capital, and innovation, Georges noticed how these siloed constructs are woefully incompatible with the principles nature deploys to produce regenerative performance. With humanity stuck in a fabric of its own making, Georges set out to reinvent the operating-systems of humanity to fix the theory that determines what humanity can discover, aiming to fundamentally improve human adaptability to nature's entropy.
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