In 2011 VC firm Benchmark Capital paid $12 million for a 20 percent stake in Uber. In 2023, Uber can claim debts in the $10 billion range. Hopefully readers can see the connection between the two anecdotes, but if not, please read on.
Benchmark secured a fifth of Uber in 2011 because the expectation was that it would fail. Like the vast majority of venture capital investments. Only for Uber to become arguably the most “Unicorn” of the Valley unicorns in the 2010s.
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