Scott Kupor, Managing Partner at Andreessen Horowitz and author of Secrets of Sand Hill Road: Venture Capital and How to Get It, discusses the future of the venture capital industry and the importance of diversity and inclusion in entrepreneurship with RockCreek Founder & CEO Afsaneh Beschloss.
Kupor has been with Andreessen Horowitz since its founding in 2009, where he has managed the growth of the company from 3 employees to 150, and from $300 million in assets to over $10 billion in assets.
In his new book, Secrets of Sand Hill Road: Venture Capital and How to Get It, Scott Kupor demystifies the nuances of the venture capital market, and addresses the process from every angle – how VCs decide where to invest, forming a start-up, raising money, creating a pitch, and even possible financial struggles of a new company.
On the significance of venture capital: “Venture capital is a really small business, particularly when you compare it with other financial asset classes … But the impact of venture-capital-funded businesses punches well above its weight. The five largest US market capitalization companies are all venture-backed – Apple, Facebook, Microsoft, Amazon, and Google.”
On investment failures: “It’s okay for a VC to invest in a company that ultimately fails. As we’ve discussed, that’s par for the course in this business. What’s not okay is to fail to invest in a company that becomes the next Facebook. Remember, you can’t risk-averse your way to success in this business.”
On the future of venture capital: “The world is undeniably flat – and the global playing field has never been more open to the startup opportunities. I hope at some small level that this book helps inspire more people to think about the role they can play in this increasingly important ecosystem to improve the growth prospects and financial well-being of people all across the globe.”
Venture capital, meet institutional investment. Venture capital investments are becoming an essential part of any institutional investor’s portfolio and the asset class is changing as capital floods its markets.
Mr. Kupor’s advice is indispensable for any start-up founder looking for capital and any investors, and his expertise makes Secrets of Sand Hill Road a must-read for entrepreneurs, policymakers, and investors alike.