Why the differences between entrepreneurs and investors can be good and bad

 

Have you ever been on the psychologist's couch and taken the word association test? Black/white. Oil/water. Sun/rain. Chalk/cheese. Entrepreneur/investor?

 

The difference between entrepreneur and investor ought to be a strength. Complementary skills in a team are essential. But somehow that is not how it often seems to work. Certainly the performance of the early stage investment industry appears to indicate that these complementary skills are not combining effectively, because they are not producing a very satisfactory result. The British Venture Capital Association (BVCA) statistics show that roughly three-quarters of venture capital funds raised since 1999 have lost money. For most vintage years, the 25^th percentile, in median terms, shows an internal rate of return (IRR) marginally either side of zero.