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The Venture Mindset: How to Make Smarter Bets and Achieve Extraordinary Growth
Inspired by venture capitalists’ unique mindset, this is a transformative playbook for delivering extraordinary results in modern organizations, from a Stanford professor and a technology executive.
Behind life changing companies like Amazon, Google, Moderna, SpaceX, Zoom, and 23andMe, are Venture Capital investors. VCs are known for extraordinary ability to spot emerging trends, identify disruptive startups, attract talent, and bring new industries into being.
Ilya Strebulaev has spent the last two decades at Stanford studying VCs’ counterintuitive approaches to decision-making, and the reasons behind the success and failure of corporate innovation efforts. Alex Dang, a senior leader at McKinsey and Amazon, has seen up close the impact VCs’ thinking and mechanisms can have on a business’ success. Together in The Venture Mindset , they present nine distinct principles that can help anyone looking to transform their business and achieve extraordinary results, no matter the industry.
The Venture Mindset is a new mental model where failure is a must, ideas are rejected in their myriads in search of a single winner, due diligence is put on its head, dissent is encouraged, plugs are pulled, and time horizons are extended. It is fundamentally different from the mindset found throughout the rest of the business world. This mindset helps leaders to develop a strong pipeline of ideas, make smarter, quicker decisions, and deliver more value at scale. It’s a must read for any leader looking to stave off irrelevance and win big in the uncertain world of business today.
Behind life changing companies like Amazon, Google, Moderna, SpaceX, Zoom, and 23andMe, are Venture Capital investors. VCs are known for extraordinary ability to spot emerging trends, identify disruptive startups, attract talent, and bring new industries into being.
Ilya Strebulaev has spent the last two decades at Stanford studying VCs’ counterintuitive approaches to decision-making, and the reasons behind the success and failure of corporate innovation efforts. Alex Dang, a senior leader at McKinsey and Amazon, has seen up close the impact VCs’ thinking and mechanisms can have on a business’ success. Together in The Venture Mindset , they present nine distinct principles that can help anyone looking to transform their business and achieve extraordinary results, no matter the industry.
The Venture Mindset is a new mental model where failure is a must, ideas are rejected in their myriads in search of a single winner, due diligence is put on its head, dissent is encouraged, plugs are pulled, and time horizons are extended. It is fundamentally different from the mindset found throughout the rest of the business world. This mindset helps leaders to develop a strong pipeline of ideas, make smarter, quicker decisions, and deliver more value at scale. It’s a must read for any leader looking to stave off irrelevance and win big in the uncertain world of business today.
368 pages, Hardcover
Published May 21, 2024
223 people are currently reading
1416 people want to read
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Displaying 1 - 30 of 42 reviews
July 31, 2024
In "The Venture Mindset: How to Make Smarter Bets and Achieve Extraordinary Growth," Ilya Strebulaev and Alex Dang offer a deep dive into the world of venture capital, shedding light on how successful venture capitalists identify and nurture groundbreaking ideas. The book explores the strategic thinking and decision-making processes that enable these investors to spot world-changing innovations before they become widely recognized. For both entrepreneurs and investors, understanding these principles can be invaluable in navigating a competitive landscape and making informed choices.
The authors highlight the importance of long-term thinking and the pivotal role venture capitalists play in the success of startups. Through real-world examples, such as the story of Zoom, they illustrate how venture capitalists evaluate potential investments. In 2012, investors Sachin Deshpande, Patrick Eggen, and Nagraj Kashyap recognized the unique potential of Saasbee (later known as Zoom) in a crowded videoconferencing market dominated by giants like Cisco's WebEx and Microsoft's Skype. Their decision to invest $500K, despite the risks and initial skepticism from others, underscores the value of backing unconventional ideas and visionary founders. This story emphasizes looking beyond traditional metrics to focus on a founder's vision, expertise, and ability to execute.
The book also delves into the art of saying no, explaining how venture capitalists use the critical flaw approach to sift through countless pitches efficiently. By identifying dealbreakers early in the evaluation process, VCs can quickly narrow down their options and focus on the most promising opportunities. This approach is not limited to Silicon Valley boardrooms; it can be applied to various aspects of life and work, helping individuals make quicker and more confident decisions.
Another key aspect of venture capital decision-making is encouraging disagreement. The authors argue that consensus often masks deeper issues, and true innovation often comes from going against the grain. They advocate for creating environments that encourage dissent and contrarian thinking, allowing for a thorough examination of all aspects of an investment opportunity. This practice not only helps prevent groupthink but also ensures that decisions are made after rigorous debate and testing.
Embracing failure as a path to innovation is another crucial lesson from the book. The journey of SpaceX, from its early failures to its success as a leader in commercial space launches, exemplifies the importance of resilience and long-term commitment. Venture capitalists understand that significant breakthroughs often emerge from failures, and they support entrepreneurs through these challenging times by providing the necessary resources and trusting in the team's vision. This long-term perspective is vital for anyone looking to cultivate innovation, as it allows for the experimentation and iteration necessary to achieve groundbreaking results.
In summary, "The Venture Mindset" provides valuable insights into the strategies and mindset of successful venture capitalists. By understanding the importance of founder vision, taking calculated risks, employing critical flaw analysis, encouraging dissent, and embracing a long-term perspective, readers can apply these principles to their own ventures and personal projects. The book encourages cultivating resilience, patience, and a supportive environment for bold ideas, which are essential for driving impactful change and uncovering extraordinary opportunities.
The authors highlight the importance of long-term thinking and the pivotal role venture capitalists play in the success of startups. Through real-world examples, such as the story of Zoom, they illustrate how venture capitalists evaluate potential investments. In 2012, investors Sachin Deshpande, Patrick Eggen, and Nagraj Kashyap recognized the unique potential of Saasbee (later known as Zoom) in a crowded videoconferencing market dominated by giants like Cisco's WebEx and Microsoft's Skype. Their decision to invest $500K, despite the risks and initial skepticism from others, underscores the value of backing unconventional ideas and visionary founders. This story emphasizes looking beyond traditional metrics to focus on a founder's vision, expertise, and ability to execute.
The book also delves into the art of saying no, explaining how venture capitalists use the critical flaw approach to sift through countless pitches efficiently. By identifying dealbreakers early in the evaluation process, VCs can quickly narrow down their options and focus on the most promising opportunities. This approach is not limited to Silicon Valley boardrooms; it can be applied to various aspects of life and work, helping individuals make quicker and more confident decisions.
Another key aspect of venture capital decision-making is encouraging disagreement. The authors argue that consensus often masks deeper issues, and true innovation often comes from going against the grain. They advocate for creating environments that encourage dissent and contrarian thinking, allowing for a thorough examination of all aspects of an investment opportunity. This practice not only helps prevent groupthink but also ensures that decisions are made after rigorous debate and testing.
Embracing failure as a path to innovation is another crucial lesson from the book. The journey of SpaceX, from its early failures to its success as a leader in commercial space launches, exemplifies the importance of resilience and long-term commitment. Venture capitalists understand that significant breakthroughs often emerge from failures, and they support entrepreneurs through these challenging times by providing the necessary resources and trusting in the team's vision. This long-term perspective is vital for anyone looking to cultivate innovation, as it allows for the experimentation and iteration necessary to achieve groundbreaking results.
In summary, "The Venture Mindset" provides valuable insights into the strategies and mindset of successful venture capitalists. By understanding the importance of founder vision, taking calculated risks, employing critical flaw analysis, encouraging dissent, and embracing a long-term perspective, readers can apply these principles to their own ventures and personal projects. The book encourages cultivating resilience, patience, and a supportive environment for bold ideas, which are essential for driving impactful change and uncovering extraordinary opportunities.
December 25, 2024
A great entry level book to understand the logic of venture capital backing completely unproven, but high potential ideas. Well researched, but easy to read, it covers the key topics from cap table formation, liquidity preferences, employee incentives, staging of rounds, etc etc but not as a lexicon of buzzwords, but rather approaching them from the logic of _why_ these things matter.
The intended audience are people inside larger organizations wanting to drive change and borrow from the early stage energy. Might feel a bit basic if you’ve been in startup building game and reading TechCrunch for a decade - but you’ll still pick up a useful framework or research reference here and there. And definitely gift this book to people you want to introduce to your world.
The intended audience are people inside larger organizations wanting to drive change and borrow from the early stage energy. Might feel a bit basic if you’ve been in startup building game and reading TechCrunch for a decade - but you’ll still pick up a useful framework or research reference here and there. And definitely gift this book to people you want to introduce to your world.
Currently reading
July 30, 2024WIP
Things to takeaway from this book:
- Start by hunting for reasons to say no to filter out less promising options quickly, allowing you to focus your resources on more promising opportunities. Focus on finding those automatic dealbreakers first. You'll be amazed at how much more quickly and confidently you can narrow down your options.
- Encouraging disagreement to drive successful investments (interesting take – if everyone agrees on something, the potential for outsized returns diminishes. )
Notes to organise:
- Have you ever wondered what it takes to spot a world-changing idea before it becomes obvious to everyone? . . . discover the strategies that venture capitalists use to identify and nurture transformative ideas, the importance of long-term thinking, and how you can apply these lessons to succeed in your own endeavors
- In 2012, Sachin Deshpande, Patrick Eggen, and Nagraj Kashyap found themselves in this very position when they encountered Saasbee, a small startup. Saasbee’s vision? To transform videoconferencing in the post-PC era. The result? This company is now Zoom, a tech giant. (The decision to invest $500K in Saasbee was not without its risks. The startup had no paying customers and was up against well-established competitors with deep pockets.)
- the critical flaw approach, a strategy that focuses on identifying dealbreakers early in the evaluation process. This method allows them to efficiently navigate the high-stakes environment of startup investing, where quick and decisive action is paramount.
- the story of SpaceX, the pioneering space technology company founded by Elon Musk, serves as a powerful reminder that truly groundbreaking achievements require a long-term perspective and unwavering commitment.
TBA BT
For those seeking to cultivate innovation, whether as entrepreneurs, investors, or leaders in established organizations, embracing a long-term mindset is essential. It requires the courage to bet on bold ideas, even in the face of skepticism and short-term pressures. It means providing the resources and runway for these ideas to take flight, acknowledging that the journey may be turbulent but the destination is worth the effort. Most importantly, it means redefining your relationship with failure, viewing it not as a stigma but as a natural part of the innovation process – a sign that you're pushing boundaries and taking calculated risks.
Things to takeaway from this book:
- Start by hunting for reasons to say no to filter out less promising options quickly, allowing you to focus your resources on more promising opportunities. Focus on finding those automatic dealbreakers first. You'll be amazed at how much more quickly and confidently you can narrow down your options.
- Encouraging disagreement to drive successful investments (interesting take – if everyone agrees on something, the potential for outsized returns diminishes. )
Notes to organise:
- Have you ever wondered what it takes to spot a world-changing idea before it becomes obvious to everyone? . . . discover the strategies that venture capitalists use to identify and nurture transformative ideas, the importance of long-term thinking, and how you can apply these lessons to succeed in your own endeavors
- In 2012, Sachin Deshpande, Patrick Eggen, and Nagraj Kashyap found themselves in this very position when they encountered Saasbee, a small startup. Saasbee’s vision? To transform videoconferencing in the post-PC era. The result? This company is now Zoom, a tech giant. (The decision to invest $500K in Saasbee was not without its risks. The startup had no paying customers and was up against well-established competitors with deep pockets.)
- the critical flaw approach, a strategy that focuses on identifying dealbreakers early in the evaluation process. This method allows them to efficiently navigate the high-stakes environment of startup investing, where quick and decisive action is paramount.
- the story of SpaceX, the pioneering space technology company founded by Elon Musk, serves as a powerful reminder that truly groundbreaking achievements require a long-term perspective and unwavering commitment.
TBA BT
For those seeking to cultivate innovation, whether as entrepreneurs, investors, or leaders in established organizations, embracing a long-term mindset is essential. It requires the courage to bet on bold ideas, even in the face of skepticism and short-term pressures. It means providing the resources and runway for these ideas to take flight, acknowledging that the journey may be turbulent but the destination is worth the effort. Most importantly, it means redefining your relationship with failure, viewing it not as a stigma but as a natural part of the innovation process – a sign that you're pushing boundaries and taking calculated risks.
October 12, 2024
Uno de los mejores libros para aquellas personas que no estan en el negocio del VC y quieren entender como trabajamos y pensamos. 100% recomendado para cualquier ejecutivo o persona interesados en innnovacion disruptiva.
June 12, 2024
For startups and founders (as I am): barely useful
One more of these business books cluttered with too many anecdotes to fill pages without actually contributing. I wish there was more from the academic papers. Look up for the summary of the framework presented, and you will have all the info needed.
One more of these business books cluttered with too many anecdotes to fill pages without actually contributing. I wish there was more from the academic papers. Look up for the summary of the framework presented, and you will have all the info needed.
November 16, 2025
A little bit of sample bias. But overall the book was fun to read and i can imagine reading it again in future.
May 29, 2024
I had been looking forward to this book because of the authors’ exceptional expertise in VC. Ilya Strebulaev is a Professor at the Stanford Graduate School of Business (GSB), where he teaches a highly popular class on venture capital and has among his former students both unicorn founders (e.g., DoorDash) and prominent VCs. Prof. Strebulaev is a prolific researcher and is considered the world’s leading authority on all matters VC. His co-author, Alex Dang, is a venture builder, tech executive, and former partner at McKinsey. I was looking for insights into the world of VC from real authorities in this field, and I got all I wanted and more.
Here is what I really loved about the book:
It is a great example of storytelling and reads smoothly, which is rare for a data-driven and research-based publication. One remarkable real-life story leads to another, and it was hard to put the book down once I started reading it. I finished the book in one weekend.
As someone who has fundraised, I find the insight into how VCs process founder pitches and assess founder teams to be immensely helpful. If you are considering raising capital from VCs, you may find it useful too. The way the authors articulated real option theory, both in the VC context and in life generally, was refreshing.
Putting my managerial hat on, I appreciate the real-life frameworks for facilitating innovation in an established organization. The authors give examples of incumbents who have made it work. There are also plenty of stories about what can go wrong – escalation of commitment is my favorite. There are numerous lessons on organizational decision-making and ways to correct for biases.
Overall, it is a great read for anyone interested in VC firms, startups, management, decision-making, corporate history, wine, Silicon Valley, literature, networking, Stanford, innovation, sharks, red flags, parenting, GSB, building things, risk-taking, the future, biases, jockeys & horses, unicorns, successes & failures, teams, incentives, TV shows, games, pies, pricing, marshmallows, etc. – a rare multidimensional book from erudite authors. A real treat.
Here is what I really loved about the book:
It is a great example of storytelling and reads smoothly, which is rare for a data-driven and research-based publication. One remarkable real-life story leads to another, and it was hard to put the book down once I started reading it. I finished the book in one weekend.
As someone who has fundraised, I find the insight into how VCs process founder pitches and assess founder teams to be immensely helpful. If you are considering raising capital from VCs, you may find it useful too. The way the authors articulated real option theory, both in the VC context and in life generally, was refreshing.
Putting my managerial hat on, I appreciate the real-life frameworks for facilitating innovation in an established organization. The authors give examples of incumbents who have made it work. There are also plenty of stories about what can go wrong – escalation of commitment is my favorite. There are numerous lessons on organizational decision-making and ways to correct for biases.
Overall, it is a great read for anyone interested in VC firms, startups, management, decision-making, corporate history, wine, Silicon Valley, literature, networking, Stanford, innovation, sharks, red flags, parenting, GSB, building things, risk-taking, the future, biases, jockeys & horses, unicorns, successes & failures, teams, incentives, TV shows, games, pies, pricing, marshmallows, etc. – a rare multidimensional book from erudite authors. A real treat.
August 10, 2024
As someone who is about to embark on the journey of innovation and disruption, I really loved reading this book because having the right mindset, and especially a prepared one is really important to create something great.
What I foremost understood was how VCs approach their “failed” investments, and failures as a whole. It turns out this is what makes them breathe and live on innovation. I also want to have this kind of mindset in my business journey.
Serendipity - such a beautiful word! And has no less great meaning, which indeed favors the notion of prepared mind. Sometimes, patience is the most vital asset. Great things take time. This made me think of the great value of being focused as a more optimal strategy rather than boiling the ocean.
One of the most interesting moments is how VC approach evaluating opportunities they meet. I am currently also reading the book “Thinking, fast and slowly” by Daniel Kahneman, and it is a very good representative of that: it takes seconds to decide what startup not to invest in, but days and hours (on average 180) to go through the due diligence process. So for me as a startup founder, it is an alarm to have the ability to articulate the value of my venture in seconds.
People follow leaders, not ideas. And VCs too, press on the team first. “It is better to invest in an A team with a B idea, rather than in a B team with an A idea”. So, founders need to build great teams — processes and products go after that only. The book is full of examples of how to cultivate a group thinking process, by thinking actively, designing creative processes (Let the devil speak) to address the biases and agreeing to disagree.
A high level of execution is everything. Good intentions don’t work by themselves. Distributing and creating movement with those ideas is what turned most of the companies into unicorns. Otherwise, nothing can ever beat consensus. Are you determined enough to disrupt?
There is a lot to learn from Venture Capitalists, and I am starting to implement the practices to grow my mindset and seed for a longer journey.
What I foremost understood was how VCs approach their “failed” investments, and failures as a whole. It turns out this is what makes them breathe and live on innovation. I also want to have this kind of mindset in my business journey.
Serendipity - such a beautiful word! And has no less great meaning, which indeed favors the notion of prepared mind. Sometimes, patience is the most vital asset. Great things take time. This made me think of the great value of being focused as a more optimal strategy rather than boiling the ocean.
One of the most interesting moments is how VC approach evaluating opportunities they meet. I am currently also reading the book “Thinking, fast and slowly” by Daniel Kahneman, and it is a very good representative of that: it takes seconds to decide what startup not to invest in, but days and hours (on average 180) to go through the due diligence process. So for me as a startup founder, it is an alarm to have the ability to articulate the value of my venture in seconds.
People follow leaders, not ideas. And VCs too, press on the team first. “It is better to invest in an A team with a B idea, rather than in a B team with an A idea”. So, founders need to build great teams — processes and products go after that only. The book is full of examples of how to cultivate a group thinking process, by thinking actively, designing creative processes (Let the devil speak) to address the biases and agreeing to disagree.
A high level of execution is everything. Good intentions don’t work by themselves. Distributing and creating movement with those ideas is what turned most of the companies into unicorns. Otherwise, nothing can ever beat consensus. Are you determined enough to disrupt?
There is a lot to learn from Venture Capitalists, and I am starting to implement the practices to grow my mindset and seed for a longer journey.
December 27, 2025
The first thing I noticed when reviewing this book is that the co-author’s name—Alex Dang—is missing. Alex is currently a Senior Advisor at McKinsey and previously worked at Amazon, where he led some innovative features like Try Before You Buy, Sampling, Subscription Boxes, and AI services for sellers. He is also a Stanford B-School alumnus. We had the pleasure of hosting Alex in one of our AI sessions for business leaders. Interestingly, this book was introduced to me much earlier when my manager met Alex in US and recommended it to all of us. I’m glad I finished reading it before meeting him in person and share my views.
The book essentially explores what a VC mindset is and how to cultivate one. In today’s hyper-uncertain world—driven largely by the AI revolution—where it’s impossible to predict which ideas or projects will succeed, embracing this mindset is critical, especially for CEOs and CFOs.
What makes great VCs successful—betting on the team, doing their own due diligence, building a portfolio instead of betting on one big idea, and adopting a staggered investment approach—are principles that apply equally to how organizations should allocate resources across the many ideas unleashed by AI. Tech giants like Google and Amazon have mastered this art. It’s high time organizations in India, especially MNCs and conglomerates, learn this approach. Doing so will not only help them stay relevant but also lead the way for years to come.
Remember, Amazon of today isn’t where it is just Amazon Marketplace (though that helped). Its success comes from continuous innovation in areas like AWS, Amazon Prime, and Amazon Robotics. Were there failures along the way? Absolutely—Amazon Fire Phone, Amazon Go touchless stores, and others. But that’s the small price you MUST pay to achieve greatness and sustain it.
The book essentially explores what a VC mindset is and how to cultivate one. In today’s hyper-uncertain world—driven largely by the AI revolution—where it’s impossible to predict which ideas or projects will succeed, embracing this mindset is critical, especially for CEOs and CFOs.
What makes great VCs successful—betting on the team, doing their own due diligence, building a portfolio instead of betting on one big idea, and adopting a staggered investment approach—are principles that apply equally to how organizations should allocate resources across the many ideas unleashed by AI. Tech giants like Google and Amazon have mastered this art. It’s high time organizations in India, especially MNCs and conglomerates, learn this approach. Doing so will not only help them stay relevant but also lead the way for years to come.
Remember, Amazon of today isn’t where it is just Amazon Marketplace (though that helped). Its success comes from continuous innovation in areas like AWS, Amazon Prime, and Amazon Robotics. Were there failures along the way? Absolutely—Amazon Fire Phone, Amazon Go touchless stores, and others. But that’s the small price you MUST pay to achieve greatness and sustain it.
June 12, 2024
"The Venture Mindset" by Strebulaev and Dang is an essential read for anyone in the corporate world looking to drive significant innovation within their organizations. This book outlines how the principles of venture capital can be applied to enhance corporate strategies and foster a culture of innovation. What sets this book apart is its blend of profound insights with practical steps that can be immediately integrated into corporate practices.
Drawing from extensive case studies and their rich experience, the authors demystify the venture capital approach, emphasizing the importance of nurturing a 'venture mindset' to recognize and seize opportunities in a rapidly changing business landscape. The Nine Principles of the Venture Mindset detailed in the book are not just theoretical; they are actionable strategies that have been proven to facilitate corporate growth and resilience.
This book is particularly timely, given the increasing impact of technological advancements like AI across various industries. The authors propose a paradigm shift from traditional conservative business practices to more dynamic, risk-tolerant approaches that encourage experimentation and embrace failure as a stepping stone to success.
Corporate leaders, from CEOs to mid-level managers, will find invaluable resources in this book to help transform their organizations into more agile, innovative, and competitive entities. Reading "The Venture Mindset" equips leaders with the tools to think like venture capitalists, making bold decisions that could potentially redefine their industries.
Drawing from extensive case studies and their rich experience, the authors demystify the venture capital approach, emphasizing the importance of nurturing a 'venture mindset' to recognize and seize opportunities in a rapidly changing business landscape. The Nine Principles of the Venture Mindset detailed in the book are not just theoretical; they are actionable strategies that have been proven to facilitate corporate growth and resilience.
This book is particularly timely, given the increasing impact of technological advancements like AI across various industries. The authors propose a paradigm shift from traditional conservative business practices to more dynamic, risk-tolerant approaches that encourage experimentation and embrace failure as a stepping stone to success.
Corporate leaders, from CEOs to mid-level managers, will find invaluable resources in this book to help transform their organizations into more agile, innovative, and competitive entities. Reading "The Venture Mindset" equips leaders with the tools to think like venture capitalists, making bold decisions that could potentially redefine their industries.
July 30, 2024
I appreciate alternate and contrarian takes more than the conventional ones as I believe you only move forward, at least a step ahead of everyone, only when you can think out of the box.
This book, thanks to the incredible caliber of the authors, offers exactly that - an unconventional set of tips that can help you sift through the corporate world much more efficiently than the average crowd.
I've learned much about the Critical-floor approach of saying No in a minute or so to eliminate the red flags right away allowing one to focus on more potential projects - corporate or personal, which is one more plus point of reading the book that you can apply the guide to your personal life just as well.
Encouraging dissent is another topic of the book that I really enjoyed. It seems coming to a consensus doesn't always lead to success, you should go for the magic of constructive criticism until a conclusion is reached out of the strengths and weaknesses of the proposition.
Failure is a pillar - well, we all know that - couple of generic stuff like these bring down a star for me but understandable why they would be included in a book like this.
Overall, a great book nonetheless! I'm glad I got to come in touch with it.
This book, thanks to the incredible caliber of the authors, offers exactly that - an unconventional set of tips that can help you sift through the corporate world much more efficiently than the average crowd.
I've learned much about the Critical-floor approach of saying No in a minute or so to eliminate the red flags right away allowing one to focus on more potential projects - corporate or personal, which is one more plus point of reading the book that you can apply the guide to your personal life just as well.
Encouraging dissent is another topic of the book that I really enjoyed. It seems coming to a consensus doesn't always lead to success, you should go for the magic of constructive criticism until a conclusion is reached out of the strengths and weaknesses of the proposition.
Failure is a pillar - well, we all know that - couple of generic stuff like these bring down a star for me but understandable why they would be included in a book like this.
Overall, a great book nonetheless! I'm glad I got to come in touch with it.
March 2, 2025
This one was similar to my all time favourite business book, Good to Great by Jim Collins which was based on a study over decades of what made the most successful companies different.
It is also based on extensive research but of venture capitalists and venture backed companies.
The book argues that we are changing towards a world where the most successful companies are Venture Capital (VC) backed and where technology is changing so fast that we need not the incremental innovation of the past but the disruptive innovation that comes from a Venture Mindset and thinking like a VC.
There are Nine Principles of the Venture Mindset:
1 Home Runs Matter, Strikeouts Don’t ⚾
2 Get Outside the Four Walls 🏠
3 Prepare Your Mind 🤔
4 Say No 100 Times 🙅♂️
5 Bet on the Jockey 🏇
6 Agree to Disagree 😕
7 Double Down or Quit ♠
8 Make the Pie Bigger 🥧
9 Great Things Take Time 🕰
I could write about each one of these but for now, here are two of my favourites which show how VC’s think:
1 HOME RUNS MATTER, STRIKEOUTS DON'T ⚾
(Do: Make many small bets
Avoid: “Failure is not an option” mentality)
The worst fear for a VC is not losing all of their money on an investment, but missing investing in the next Amazon, Google, or Facebook.
They expect to fail most of the time with their investments but when they do win, they are looking to win big so that the return from that one company dwarves the losses on their other investments.
It is a change of mindset from avolding failure at all costs to viewing failure as a normal outcome – if you are not seeing failures, then you are not taking enough risk.
7 DOUBLE DOWN OR QUIT ♠
(Do: Allow Flexibility
Avoid: Escalation of Commitment)
I often hear tech start-up founders complain about having to continually be in fund raising mode and why can’t investors just give them all the money that they need at the start?
But the book argues that venture capital investing is like a game of poker.
VC investors are investing based on incomplete information, so they want to see if their investee companies can get to the next milestone so that they can decide whether to twist (and invest again), raise or fold.
I found the Nine Principles and stories of famous VC backed companies invaluable in helping to understand how VCs think and how to make better business decisions in the changing world that we now live in.
This one is a must read for anyone working for or with tech startups but also for anyone interested in how we might best achieve sustainable growth and create companies that can thrive in the world that we live in now.
To do that, we need to make bigger bets, to be prepared to fail and to have a Venture Mindset.
P.S. As an illustration of how useful I found this one - I listened to it on Audible to start with, then bought the hardback, then bought copies for my colleagues who work for my business.
One to keep referring back to and it may even challenge Good to Great as my all time favourite.
It is also based on extensive research but of venture capitalists and venture backed companies.
The book argues that we are changing towards a world where the most successful companies are Venture Capital (VC) backed and where technology is changing so fast that we need not the incremental innovation of the past but the disruptive innovation that comes from a Venture Mindset and thinking like a VC.
There are Nine Principles of the Venture Mindset:
1 Home Runs Matter, Strikeouts Don’t ⚾
2 Get Outside the Four Walls 🏠
3 Prepare Your Mind 🤔
4 Say No 100 Times 🙅♂️
5 Bet on the Jockey 🏇
6 Agree to Disagree 😕
7 Double Down or Quit ♠
8 Make the Pie Bigger 🥧
9 Great Things Take Time 🕰
I could write about each one of these but for now, here are two of my favourites which show how VC’s think:
1 HOME RUNS MATTER, STRIKEOUTS DON'T ⚾
(Do: Make many small bets
Avoid: “Failure is not an option” mentality)
The worst fear for a VC is not losing all of their money on an investment, but missing investing in the next Amazon, Google, or Facebook.
They expect to fail most of the time with their investments but when they do win, they are looking to win big so that the return from that one company dwarves the losses on their other investments.
It is a change of mindset from avolding failure at all costs to viewing failure as a normal outcome – if you are not seeing failures, then you are not taking enough risk.
7 DOUBLE DOWN OR QUIT ♠
(Do: Allow Flexibility
Avoid: Escalation of Commitment)
I often hear tech start-up founders complain about having to continually be in fund raising mode and why can’t investors just give them all the money that they need at the start?
But the book argues that venture capital investing is like a game of poker.
VC investors are investing based on incomplete information, so they want to see if their investee companies can get to the next milestone so that they can decide whether to twist (and invest again), raise or fold.
I found the Nine Principles and stories of famous VC backed companies invaluable in helping to understand how VCs think and how to make better business decisions in the changing world that we now live in.
This one is a must read for anyone working for or with tech startups but also for anyone interested in how we might best achieve sustainable growth and create companies that can thrive in the world that we live in now.
To do that, we need to make bigger bets, to be prepared to fail and to have a Venture Mindset.
P.S. As an illustration of how useful I found this one - I listened to it on Audible to start with, then bought the hardback, then bought copies for my colleagues who work for my business.
One to keep referring back to and it may even challenge Good to Great as my all time favourite.
November 13, 2024
Un sólido libro sobre cómo aplicar en el día a día, en un entorno no solo corporativo si no incluso personal, los principios que rigen el accionar del capitalista de riesgo.
Los autores contrastan de manera permanente la mentalidad tradicional vs la mentalidad "venture" en las decisiones del día a día en un ámbito de negocios, y cómo cada mentalidad genera resultados alineados con los incentivos de los tomadores de decisiones. El libro también es particularmente útil para hacer un diagnóstico rápido sobre cuál es la mentalidad preponderante en cualquier compañía.
El ejercicio de condensar los mensajes en 9 principios centrales es clave para generar repetición y recordación a través de diferentes historias de éxito y de fracaso. Sin embargo, no se queda solo en historias, también usa datos de papers propios de Ilya en su labor como investigador en Stanford.
Es una lectura obligada para cualquier ejecutivo/directivo de una empresa grande, más aún si el rol tiene que ver con innovación, estrategia, y/o finanzas.
Los autores contrastan de manera permanente la mentalidad tradicional vs la mentalidad "venture" en las decisiones del día a día en un ámbito de negocios, y cómo cada mentalidad genera resultados alineados con los incentivos de los tomadores de decisiones. El libro también es particularmente útil para hacer un diagnóstico rápido sobre cuál es la mentalidad preponderante en cualquier compañía.
El ejercicio de condensar los mensajes en 9 principios centrales es clave para generar repetición y recordación a través de diferentes historias de éxito y de fracaso. Sin embargo, no se queda solo en historias, también usa datos de papers propios de Ilya en su labor como investigador en Stanford.
Es una lectura obligada para cualquier ejecutivo/directivo de una empresa grande, más aún si el rol tiene que ver con innovación, estrategia, y/o finanzas.
May 28, 2024
I really enjoyed this book. Both authors share 20+ years of anecdotes, stories and insights learned from working with VCs and entrepreneurs alike, and then make a really good work of tying each insight to practical applications for someone's career or personal life.
I'll be applying a ton of the best practices they recommend at my current role leading product for a series B startup. The book plants seeds on long-term thinking, provides ideas on how to approach betting and going big in some areas, while also being ok with experimenting and failing in others. The book provides a nice reflection of how thinking like VCs can lead to outsized gains in both business and life.
I'd recommend this book to anyone who's looking for a good business book. It's inspiring and will drive some new thinking on your side.
I'll be applying a ton of the best practices they recommend at my current role leading product for a series B startup. The book plants seeds on long-term thinking, provides ideas on how to approach betting and going big in some areas, while also being ok with experimenting and failing in others. The book provides a nice reflection of how thinking like VCs can lead to outsized gains in both business and life.
I'd recommend this book to anyone who's looking for a good business book. It's inspiring and will drive some new thinking on your side.
June 15, 2024
In “The Venture Mindset,” Alex Dang and Ilya Strebulaev distill their extensive experiences and research into a transformative playbook that is both practical and profound. They blend Alexey’s hands-on expertise from Amazon and McKinsey & Company with Ilya’s academic prowess from Stanford University, creating a unique and powerful perspective on achieving extraordinary growth in an uncertain world.
Packed with insightful stories and backed by scientific precision, this book is a must-read for anyone aiming to thrive in today’s uncertain business landscape. Whether you’re an entrepreneur, executive, or aspiring leader, “The Venture Mindset” provides invaluable tools to not just survive but win big.
Packed with insightful stories and backed by scientific precision, this book is a must-read for anyone aiming to thrive in today’s uncertain business landscape. Whether you’re an entrepreneur, executive, or aspiring leader, “The Venture Mindset” provides invaluable tools to not just survive but win big.
September 8, 2024
This book is a gift from my visit to the a16z office. It does offer an intriguing glimpse into the world of VCs, rich with anecdotes detailing how VCs struck gold and how their experiences could be applied to traditional corporate settings. While entertaining, the ideas aren't anything mindblowing or groundbreaking, especially for those already in the tech industry. Concepts like 'agree to disagree' and 'great things take time' are familiar refrains, albeit presented in a more verbose package. The narrative is also a clear case of survivorship bias, predominantly focusing on success stories while potentially overlooking the 100 times VCs losing outsized amount of money investing with exactly the same mindset, think Theranos or all of those crypto scams.
May 28, 2024
The Only Business Book You Need to Read
I read a lot of books, but 'The Venture Mindset' by Alex Dang and Stanford Professor Ilya Strebulaev is the only one that compelled me to write a review.
It's very rare to access insights from a top professor and a high-profile business advisor in one package, not to mention the in-depth interviews they conducted with leaders from giants like Instagram and Zoom.
Reading this book, I felt like I was right there, learning directly from some of the best minds in the world. The practical advice and strategic wisdom are truly transformative, and I'm eager to implement these lessons in both my business and personal life.
I read a lot of books, but 'The Venture Mindset' by Alex Dang and Stanford Professor Ilya Strebulaev is the only one that compelled me to write a review.
It's very rare to access insights from a top professor and a high-profile business advisor in one package, not to mention the in-depth interviews they conducted with leaders from giants like Instagram and Zoom.
Reading this book, I felt like I was right there, learning directly from some of the best minds in the world. The practical advice and strategic wisdom are truly transformative, and I'm eager to implement these lessons in both my business and personal life.
January 12, 2025
A good and concise overview on how VC’s make decisions.
As someone interested in VC, I tried to consistently read all things published by Ilya Strebulaev, which allowed me to have a better understanding of the ‘numbers’ within the VC and startup world. When it was announced that Ilya Strebulaev was publishing his book, I didn’t hesitate to preorder.
I think the book gives a great overview on how VC’s make decisions within the boundaries of high uncertainty. This ‘mindset’ is clearly explained in 9 easy-to-grasp principles that form a solid foundation for understanding VC decision-making. As someone that already had a basic understanding of these principles, I can confidently say that the book gives a clear understanding of the VC decision-making basics. I would therefore definitely recommend the book for all people interested in VC but also in decision-making within those ‘risky boundaries.’ The book illustrates well how the top VC’s are seeking the outliers in the world of business.
One thing that I would have liked to see a bit more of (especially in the beginning of the book) is the use of data and the results of previous academic papers in the field. Since the book has an academic undertone, I would have liked to see a bit more ‘in-depth data’ on, for example: statistics on top VC and entrepreneur traits, successful company characteristics, and how the best startups are sourced.
Overall, I enjoyed reading the book and I definitely recommend it for people seeking to understand the VC decision-making process.
As someone interested in VC, I tried to consistently read all things published by Ilya Strebulaev, which allowed me to have a better understanding of the ‘numbers’ within the VC and startup world. When it was announced that Ilya Strebulaev was publishing his book, I didn’t hesitate to preorder.
I think the book gives a great overview on how VC’s make decisions within the boundaries of high uncertainty. This ‘mindset’ is clearly explained in 9 easy-to-grasp principles that form a solid foundation for understanding VC decision-making. As someone that already had a basic understanding of these principles, I can confidently say that the book gives a clear understanding of the VC decision-making basics. I would therefore definitely recommend the book for all people interested in VC but also in decision-making within those ‘risky boundaries.’ The book illustrates well how the top VC’s are seeking the outliers in the world of business.
One thing that I would have liked to see a bit more of (especially in the beginning of the book) is the use of data and the results of previous academic papers in the field. Since the book has an academic undertone, I would have liked to see a bit more ‘in-depth data’ on, for example: statistics on top VC and entrepreneur traits, successful company characteristics, and how the best startups are sourced.
Overall, I enjoyed reading the book and I definitely recommend it for people seeking to understand the VC decision-making process.
June 9, 2024
A really good perspective into how innovations manifest in Silicon Valley be it a startup or larger tech companies. The book reflects the mindset of tech leaders and the art of management within a tech based company where disruption is the key driver. Its emphasis on calculated risk vs traditional management through primarily financial outcomes is hard to digest but is what differentiates the tech industry… must read -
June 12, 2024
This book is not as much of an exposition on venture capital, but much more of a self-help book. Generally the thesis is that being open to small experiments and failures fosters more innovation versus a prioritization of perfection and execution. In this way, lots of the concepts in this book mirror the themes in The Lean Startup by Eric Ries. Otherwise not a bad read - just glad that I got a free copy when a whole box full showed up at work.
This entire review has been hidden because of spoilers.
October 11, 2024
I was eagerly awaiting this book from highly respected academics. Unfortunately it regurgitates well known examples, how Slack was born from a failed startup, the failure of WeWork and A16Z subsequent investment in Adam Neumann, analogies with poker, agree to disagree. I thought there would be academic analysis of investment ratios, returns, market sizing etc, instead this is another airport business book.
May 28, 2024
Excellent book - I’m going to give copies to members of my team to read to help them better understand how to approach risks, experimentation, and failures. To me, an organization’s hidden risk is often the chances not taken (that no one ever gets blamed for) rather than the experiments run that failed (where someone often gets blamed, even though it was an experiment in the first place).
July 20, 2024
This book showed up as a gift and I’m really glad I read it. The premise is to tell leaders in large corporations have to have a venture mindset when it comes to innovation. I think anyone interested in angel investing and all entrepreneurs interested in pursuing venture should read it. Really informative and entertaining.
September 1, 2025
Only things you need to remember and explain ...
Home Runs Matter, Strikeouts Don't (Bezos says this a lot)
Get Outside the Four Walls (reminds me of what Fadell said in Build)
Prepare Your Mind
Say No 100 Times
Bet on the Jockey (Bet on teams, not ideas)
Agree to Disagree
Double Down or Quit
Make the Pie Bigger
Great Things Take Time
Home Runs Matter, Strikeouts Don't (Bezos says this a lot)
Get Outside the Four Walls (reminds me of what Fadell said in Build)
Prepare Your Mind
Say No 100 Times
Bet on the Jockey (Bet on teams, not ideas)
Agree to Disagree
Double Down or Quit
Make the Pie Bigger
Great Things Take Time
May 28, 2024
The authors (my professor and classmate at Stanford GSB) explain how everyone can benefit from adopting the mindset of venture capitalists in their lives and organizations. Well-explained and illustrated with many fascinating examples. Highly recommended!
June 15, 2024
The book explains the venture mindset in investing and many, if not most, principles are applicable to various fields in life especially investing (from a common investor perspective).
Don't miss this one.
Don't miss this one.
June 25, 2024
Overall, this is an excellent book that makes numerous interesting points. I'm glad I picked it up. It inspires and makes you reconsider your thought process. I'll look for more from Mr. Strebulayev and Mr. Dang.
October 10, 2024
This book provides insights and real-world applications. It gives clear case studies and practical frameworks, Venture Mindset offers golden nuggets not only for investors but also for entrepreneurs looking to understand how to navigate this intricate world.
June 4, 2024
Love the book. Practical advice for day to day careers that everyone will benefit from. Also very easy to read and follow
July 11, 2024
Some great lessons, and history of venture captialism
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