Why Business Leaders Should Think Like A Venture Capitalist

The book, The Venture Mindset, is all about how to make smarter bets and achieve extraordinary growth. The authors, Ilya Strebulaev and Alex Dang, explain that if any company wants to win big in competitive times, they need to think differently. They need to think like a venture capitalist (VC).

“This book teaches you to spot new opportunities, nurture the right talent, foster a culture of innovation, and take calculated risks,” say Strebulaev and Dang.

In their book, the authors share nine distinct principles inspired by the unique way VC’s think:

Home Runs Matter, Strikeouts Don’t
Get Outside the Four Walls
Prepare Your Mind
Say No 100 Times
Bet on the Jockey
Agree to Disagree
Double Down or Quit
Make the Pie Bigger
Great Things Take Time

These nine principles drive VC’s unique behaviors that have flourished in an ecosystem of thousands of startups, some of which went on to disrupt or create entirely new industries, according to the authors.

They add that “some of the lessons offered by the Venture Mindset are easy to implement, with immediate results; others are less so. But each lesson offers a powerful opportunity to change how you think and act within your own organization.”

As you read the book, you will find a Mindset Check at the end of each chapter. Use these to answer questions about your organization and think about what you may need to do differently to achieve a Venture Mindset.

Some of the questions include:
Is your organization positioned for making many small bets with the understanding that many of those will fail?
How open are your culture and organization to unexpected ideas coming from outsiders?
Do you regularly interact directly with entrepreneurs, executives, and experts to deepen your insights on developments in your industry?
Are your meetings designed to promote debate and open to disagreements?

Some of my favorite takeaways from among the nine principles include:

Pick your battleground.
Don’t get too skeptical too early.
Reward boldness.
Look beyond short-term gains.
Ignore temporary swings.

The authors share these additional insights:

Question: Of the nine Venture Mindset principles, which one is typically the most challenging for a business leader and his/her organization to master, and why?

Dang & Strebulaev: We work a lot with large organizations, and the single principle that is hardest to integrate into strategic decision-making is the idea that home runs matter and strikeouts don't.

The risk of failure is often exaggerated, and established organizations easily ignore missed opportunities until the next Google or Amazon gets big enough to disrupt their business.

Too often, everything inside a large and established organization is designed against launching new, risky ventures, with senior executives avoiding them as minefields. This is what makes Silicon Valley tech companies so unique — they continue to invent, experiment, take risks, and serve as innovation factories. More importantly, every Fortune 500 company can do the same. However, this requires a mindset change.

Question: Are the nine principles to be learned sequentially?

Dang & Strebulaev: No, each principle itself significantly improves the ability of a decision-maker to find and fund innovative ideas. It's not all about luck; there is a method to the madness.

Everyone and every organization can improve by dialing up the risk-tolerance level but in a smart way. However, mastering all of the Venture Mindset principles is important.

Without a large funnel of ideas, the effort is futile. Without killing your darlings (or less successful ventures), the organization would spread itself too thin. Without long-term commitment, you may give up too early.

So, to truly benefit from the Venture Mindset, adopting all nine principles is important. However, a journey of a thousand miles begins with a single step. To rephrase one VCs. When is the best time to start? It was yesterday!

Question: How long does it take for a business leader and his/her organization to master the nine principles and fully transform their entity to one operating with the Venture Mindset?

Dang & Strebulaev: We've seen how leaders change their behavior right after learning about some of the principles. For example, the principle of getting outside of the four walls can be immediately implemented, allowing leaders to discover many new ideas right away. However, seeing the benefits of the prepared mind principle takes more time. We've noticed that both of us have also significantly changed our behaviors. We experiment more and test our ideas rather than debating endlessly about who is right.

Transforming an organization to become venture-minded takes time. It may take 2-3 years to make it a part of the DNA of the organization. The challenge? It's not just about the leaders; it's about the leadership team and key employees who often participate in our workshops and become a team of intrapreneurs, initiating the venture mindset movement.

Thank you to the book’s publisher for sending me an advance copy of the book.

Comments

10 Quotes From The 5 Levels Of Leadership -- John C. Maxwell

Soon I'll post my full review of John C. Maxwell's latest book, The 5 Levels of Leadership . In the meantime, here are some of my favorites quotes from the book that I believe should become a must-read book by any workplace/organizational leader: Good leadership isn't about advancing yourself. It's about advancing your team. Leaders become great, not because of their power, but because of their ability to empower others. Leadership is action, not position. When people feel liked, cared for, included, valued, and trusted, they begin to work together with their leader and each other. If you have integrity with people, you develop trust. The more trust you develop, the stronger the relationship becomes. In times of difficulty, relationships are a shelter. In times of opportunity, they are a launching pad. Good leaders must embrace both care and candor. People buy into the leader, then the vision. Bringing out the best in a person is often a catal...

How to Be a Leader – 9 Principles from Dale Carnegie

Today, I welcome thought-leader Nathan Magnuson as guest blogger... Nathan writes : This is it, your first day in a formal leadership role. You’ve worked hard as an individual contributor at one or possibly several organizations. Now management has finally seen fit to promote you into a position as one of their own: a supervisor. You don’t care if your new team is only one person or ten, you’re just excited that now – finally – you will be in charge! Unfortunately the euphoria is short-lived. Almost immediately, you are not only overwhelmed with the responsibilities of a team, but you quickly find that your team members are not as experienced or adroit as you. Some aren’t even as committed. You find yourself having to repeat yourself, send their work back for corrections, and staying late to fill the gap. If something doesn’t change soon, you might just run yourself into the ground. How did something that looked so easy ...

The Psychology Of Leadership

I read many books about leadership and this book is one of my favorites. It’s The Psychology of Leadership by Sebastien Page . It offers a fresh take on leadership through the lens of groundbreaking research in positive, sports, and personality psychology. “Like exercise strengthens your body, practicing positive, sports, and personality psychology will make you a better leader,” says Page. The book blends research, fascinating true stories, humor, and self-improvement advice to deliver simple yet powerful principles to master the mental game of leadership. Page reveals timeless strategies for achieving lasting impact, fostering growth, and promoting well-being. He demonstrates how leaders and individuals can balance measurable goals with practical approaches to maximize performance and fulfillment. “Effective leadership is not merely about achieving measurable outcomes. It requires aligning goals with intrinsic motivations and psychological ins...

70 New Year's Resolutions For Leaders

With 2026 fast approaching, it's a good time to identify your New Year's Resolutions for next year. To get you started, how about selecting one or more of the following 70 New Year's resolutions for leaders? Perhaps write down five to ten and then between now and January 1, think about which couple you want to work on during 2026. Don't micromanage Don't be a bottleneck Focus on outcomes, not minutiae Build trust with your colleagues before a crisis comes Assess your company's strengths and weaknesses at all times Conduct annual risk reviews Be courageous, quick and fair Talk more about values more than rules Reward how a performance is achieved and not only the performance Constantly challenge your team to do better Celebrate your employees' successes, not your own Err on the side of taking action Communicate clearly and often Be visible Eliminate the cause of a mistake View every problem as an opportunity to grow Summarize group consensus after each deci...

How To Uncover Your Blindspots To Become A More Effective Leader

What you don't see about yourself can hold you back as a leader. That's typical for many leaders. What we don't see is what we can't see: we have blindspots . Your blindspots prevent you from achieving your greatest success. “It turns out that we're often not great judges of ourselves, even when we think we are. Sometimes we're simply unaware of a behavior or trait that's causing problems,” explains Martin Dubin , author of the book, Blindspotting: How To See What’s Holding You Back As A Leader . “Bottom line: until we uncover these blindspots, we can't move forward. The good news is that you can learn to do your own blindspotting .” “Most of us understand the idea of blindspots in a general sense—areas we can’t see, to take the term most literally, or places we have gaps that we may not even realize, to be a little more abstract,” says Dubin. “But in the context of this book, I’m defining blindspots quite specifically: They are the...

The Many Times You Should Thank Customers

In your leadership role, it's vital that your team members know how to deliver excellent customer service. " Knock Your Socks Off " type service as book editor Ann Thomas and Jill Applegate would say. Part of delivering excellent customer service is saying "Thank You" to your customers and knowing when to say "Thank You". Thomas and Applegate recommend telling your customers "Thank You" during at least these nine situations : When they do business with you...every time. When they compliment you (or your company) When they offer you comments or suggestions When they try one of your new products or services When they recommend you to a friend When they are patient...and even when they are not so patient When they help you to serve them better When they complain to you When they make you smile You and your team members can say "Thank You" : Verbally In writing (and don't underestimate the power of perso...

How To Harness The Power Of Experiential Intelligence

“Experiential Intelligence provides a new lens from which to view what makes you, you—and what makes your team and organization unique,” says Soren Kaplan , author of the book, Experiential Intelligence . Kaplan explains that over 100 years ago, we established IQ (Intelligence Quotient) to predict success. Then we explored Emotional Intelligence (EQ), the theory of multiple intelligences, and mindsets that broaden the definition of smarts. “Today, Experiential Intelligence ( XQ ) expands our understanding of what's needed to thrive in a disruptive world. While you can't change the past, your unique experiences and stories contain hidden strengths and untapped potential for the future,” explains Kaplan. Experiential Intelligence is the combination of mindsets, abilities, and know-how gained from your unique life experiences that empowers you to achieve your goals. It allows you to get in touch with the accumulated wisdom and talents you have ga...

Leadership Lessons From A Serial Entrepreneur

Brad Jacobs’ new book provides you a treasure trove of leadership lessons from a man with more than four decades of CEO and serial entrepreneur experience. So, even if you don’t envision yourself wanting to earn a billion dollars, don’t pass up reading Jacob’s, How To Make A Few Billion Dollars . In the book, Jacobs defines the mindset that drives his remarkable success in corporate America – and distills a lifetime of business brilliance into a tactical road map. And he shares his techniques for: Turning a healthy fear of failure to your advantage. Building an outrageously talented team. Catalyzing electric meetings. Transforming a company into a superorganism that beats the competition. “This book is about what I’ve learned from my blunders, and how you can replicate our successes,” says Jacobs. He shares his candid account of the highs and lows of entrepreneurship. Jacobs has founded seven billion-dollar or multibillion-dollar businesse...

7 Honest-Feedback-Extracting-Questions To Ask When Hiring

Awhile ago, the Harvard Business Review published some great questions that Gilt Groupe CEO Kevin Ryan asks when he is checking references. Ryan serves on the board of Yale Corporation, Human Rights Watch, and INSEAD , and is a member of the Council on Foreign Relations. He holds a B.A. from Yale University and a M.B.A from INSEAD. His main seven honest-feedback-extracting-questions (and follow-ups) are: Would you hire this person again? If so, why and in what capacity? If not, why not? How would you describe the candidate's ability to innovate, manage, lead, deal with ambiguity, get things done and influence others? What were some of the best things this person accomplished? What could he or she have done better? In what type of culture, environment, and role can you see this person excelling? In what type of role is he or she unlikely to be successful? Would you describe the candidate as a leader, a ...

6 Ways To Seek Feedback To Improve Your Performance In The Workplace

Getting feedback is an important way to improve performance at work. But sometimes, it can be hard to seek out, and even harder to hear. “Feedback is all around you. Your job is to find it, both through asking directly and observing it,” says David L. Van Rooy, author of the new book, Trajectory: 7 Career Strategies to Take You From Where You Are to Where You Want to Be . As today's guest post, Van Rooy offers these six tips for how to get the feedback you need to improve performance at work . Guest Post By David L. Van Rooy 1. Don’t forget to as k : One of the biggest mistakes people make is assuming things are going perfectly (until they make a catastrophic mistake). By not asking, you’re missing out on opportunities for deep feedback: the difficult, critical feedback that gives you constructive ways to improve. 2. Make sure you listen : Remember, getting fee...

Eric Jacobson On Management And Leadership

Search This Blog