Great innovations come from the pursuit of prime risk, not from its avoidance

With a commensurate vision of foresight to break the norm not beholden to everyone with access to a bucket of money.

Great innovations come from a higher normalization of evolutionary truth that spawns a new rendition of truth upstream that subsequently obliterates the regurgitation of prior downstream suboptimizations.

Hence the job of a successful venture capitalist lies in the pursuit of prime risk derived from a timely opportunity of risk with a profile deep-and-narrow, rather than the shallow-and-wide risk profile as in private equity.

Not necessarily always more risk, but merely a different composition of risk. A risk correlated to an alignment of evolutionary foresight that breaks the norm, rather than the risk that conforms to, and sub-optimizes the norm.

When venture capitalists with a lack of foresight start deflating and delaying their risk of an unprecedented outlier of innovation, only entrepreneurs that meet a venture capitalist’s self-induced subprime risk-profile will stick around. The theory, in such cases, negatively influencing what innovation can be discovered, in the words of Albert Einstein.

From a response I gave About Venture Capital Trusts in Reuters’ PE Hub, published August 26th, 2011.

The sign of an intelligent nation is its willingness and ability to reinvent itself, upstream. Let’s inspire the world with new rigors of excellence we first and successfully apply to ourselves.

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