One of our portfolio companies, FeeFighters, put up an interesting blog post today. What makes a successful entrepreneur? How should you view failure? As an investor, what types of probability should you put on certain companies success or failure? All these questions also lead into the question of valuation. An entrepreneur that has been successful in the past should command a higher valuation than a person trying it for the first time. Booth Professor Steve Kaplan has written extensively on the “horse versus the jockey”. It’s a conundrum for investors.
Harvard Reveals the Secrets to Success
Research indicates that you should bet on jockeys. But, experience says they better have a good horse. The Harvard study indicates that good jockeys pick good horses.