VCs and Founders

Venture capitalists are soccer stars.

Founders are basketball players.

Soccer and basketball are conceptually similar. Both involve teams of players dribbling, passing, and shooting into goals. They both require agility, teamwork, and endurance.

Yet the core skills differ enough where no one assumes ability in one sport translates to the other.

Likewise, investing and entrepreneurship overlap in some areas but diverge in critical ones. Two cardinal rules of investing are: (1) diversify; and (2) don’t lose money. In…