The Private Market And Venture Capitalist Essay

733 Words May 27th, 2016 3 Pages
Mr. Whitney presented enlightening information regarding entrepreneurship, why it is important and how the private market or venture capitalist are so important in investing in entrepreneurs. Venture capital is changing the global economy as banks are not investing in businesses anymore other than lending funds. Wealth creation has changed due to the internet and today wealth creation is out pacing the wealth created by inheritance (M. Whitney, personal communication, May 21, 2016). Networks create and disrupt net worth, is an axiom from Mr. Whitney’s company. As explained, networks bind things together but they take away somewhere else. This can be illustrated in the railroad industry. The railroad created a network, which tied the east and west coast together, facilitating travel and movement of goods from coast to coast. However, the railroad industry disrupted net worth of the horse and buggy industry, as this mode of transportation was replaced. Organizations tend to follow a common business model within an industry but, if you assume that there is only one business model, then your organization gets disrupted and you are blindsided. Retail is a good indicator of market shifts was another idea presented. There are three big trends portrayed in retail that is extended to every industry as a predictive indicator. One of these trends is consolidation, which we see companies buying up companies, therefore the customer base is getting smaller.…

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