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How Venture Capitalists Are Deforming Capitalism
Article

How Venture Capitalists Are Deforming Capitalism

Even the worst-run startup can beat competitors if investors prop it up.

Charles Duhigg
The New Yorker, 2020
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Editorial Rating

9

Qualities

  • Eye Opening
  • Well Structured
  • Engaging

Recommendation

Journalist Charles Duhigg pens a captivating narrative about the ascent of WeWork, its legion of venture capital backers and the ultimate unraveling of the firm’s lofty prospects. But Duhigg also highlights the frenzy surrounding the VC ecosystem, as speculative investors seek out the next big payday with less concern about nurturing new businesses and fostering innovation. Entrepreneurs and investors interested in an intriguing examination of VC will find this a compelling story.

Take-Aways

  • Despite the company’s lack of profits, venture capitalists poured billions into WeWork to fuel its growth.
  • Venture capital creates economic and financial distortions in the marketplace.
  • The investment community finally recognized WeWork’s distressed financials and absent governance, and its house of cards collapsed.

About the Author

Pulitzer Prize–winning journalist Charles Duhigg is the author of The Power of Habit and Smarter Faster Better.

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