
Full Metal Racket
The aim of venture capital is to bet on the long tail: Invest in many different start-ups, knowing most will fail but hoping at least one big success will more than offset the losses. For this reason, the business has always been focused on technology companies, which offer the greatest potential for fast growth and outsize returns. Most venture capital firms today are located in Silicon Valley, and nearly all the major tech companies, including Amazon, Apple, and Google, relied on venture capital funding to get off the ground. The playbook is simple: Raise capital from institutional investors