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Why Venture Capitalists Invest In Pigs, Not Chickens
There is an old parable about the concept of commitment when it comes to breakfast. The story goes that when looking at a plate of the traditional fare of ham and eggs, it’s obvious that the chicken is an interested party, but the pig is truly committed.
When I tell this story to entrepreneurs, my point is usually to contrast the approach VCs have to start-ups as compared to entrepreneurs. The VC is an interested party, but at the end of the day, if their start-ups live or die, they typically still have their job, their office and their portfolio of other investments. The entrepreneur, on the other hand, is the pig – truly committed to the outcome, with no fallback.
Jeff Bussgang
Full Story: http://onstartups.com/tabid/3339/bid/66022/Why-Venture-Capitalists-Invest-In-Pigs-Not-Chickens.aspx
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