Money has been pouring into Silicon Valley in recent years, and much of it has flowed into the offices of venture-capital firms, which fund and nurture tiny companies with big ideas that hope to become the next Amazon.com or Microsoft or Google. VC investors have raised an estimated $180 billion since 2013—a ginormous sum that has fueled the growth of start-ups such as Uber, Lyft, and Airbnb, whose valuations have ballooned into the billions, notwithstanding a paucity of profits. It has been one heck of a party, but don’t let all the hoodies andsneakers fool you: Funding the future is deadly serious business, and financial rewards are far from guaranteed.
Image: Reid Hoffman Photograph by Noel Spirandelli - https://www.barrons.com
