Christopher Mims, tech columnist for the WSJ, wrote an article last week about the significance of venture capitalists.
It is natural to think the major funding for the fundamental breakthrough of humanity should come from the federal R&D fund. However, Christopher points out that the role of the government in innovation has been slightly changed. Disruptive innovations are left for venture capitalists to step up and fill the lacuna by funding the right startups, because startups are where the next world-changing ideas reside.
In order to be a successful VC, managing risk is essential, therefore, according to Christopher,
partners at most VC firms invest in businesses they think will become viable, or at least worthy of an acquisition, in the shortest time possible.
He has listed several endeavors backed by VC including genetic sequencing. And these fundings could possibly contribute and lead the humanity to another large breakthrough in Human Longevity as well as other fields. Hence, venture capitalism is more optimistic business than we thought, and VCs’ right decision may be the benefactor to all of us in the future.
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