I found out about a book called “Power Law Venture Capital and the Art of Disruption” by Sebastian Mallaby through the recommendation of a friend. This book is inspired by the American economy from the early 19th century, with reporting and analyzing to bring that history to life.  

“Venture capital has influenced the American economy for over half a century now,” said Charles Duhigg, author of “The Power of Habit.”

The book is about fundraising for start-ups and venture partnerships in America. Venture capital was introduced in China with the help of some Chinese Stanford University graduate students as well as entrepreneurs like Jack Ma, who were supported by the funds from Sequoia. 

The investment partners were mostly males, who were 78% of total investors, and only 16% were females contributing to venture capital. It is interesting to know that 22% of Harvard graduates, 9% of Stanford graduates, and the remainder from other universities were in venture capital.

Through the years, top venture partnerships were replaced by each other, like in 1970, when Sutter Hill, Mayfield and others were on top, but then in 2014, Sequoia, Benchmark and Baseline rose to be new top venture capitalists. 

He has discussed the start-up of Facebook, LinkedIn and Uber, and he hasn’t missed any of the venture investments that are leading throughout the world now. He also mentioned the fall of different venture partnerships. 

According to the “power law” theory of venture capital, a few big gains offset a large number of losses. This theory changes the way we think about risk, innovation and value generation. Understanding this idea clarifies how and why the future is financed as well as who has the power to influence it.

This book is one of the most detailed observations on venture capital, and anyone who is interested in the world economy should definitely read this book once. Business, technology, policy and economics are all intertwined in this book, which highlights interdisciplinary innovation at Washburn University.

One of the main forces influencing the future is venture capital. You can gain strategic insight by comprehending it, regardless of your field—business, technology, or even social impact. It can assist you in navigating your own career, whether you wish to start your own business, invest in one or work for a startup.

Edited by Jeremy Ford and Stuti Khadka.