<ul><li>Venture Capital needs to also be about the losses, which are often overlooked.</li><li>The 80s demonstrate a fundamental misunderstanding of what drives outsized returns in venture capital.</li><li>Investors hadn’t yet understood what drives truly outsized returns in venture.</li><li>VCs were trying to predict the future instead of backing founders who could create it.</li><li>Overfunding is not only poisonous to individual companies but warps entire markets.</li><li>In the ’80s and early ’80s, the value of tech came from building better machines while by the mid-’80s, it shifted to software and networks.</li><li>The real opportunity lies in funding novel approaches to unsolved problems by funding not just what’s next, but what’s after what’s next.</li><li>This fixation on “de-risking” investments is setting us up for mediocre returns. The best returns come from taking the right risks.</li><li>The next watershed company won’t be a “proven model”. It’ll be something we can’t even imagine yet.</li><li>The VCs who win big in the next decade are the ones who can imagine entirely new patterns.</li></ul>

Investors need a history lesson.

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