weekend, my daughter, 7 years old, had to prepare an interview with one of her
parents about their job. She chose me,
lucky her - I am a venture capitalist. Explaining
what a venture capitalist does to most people is not an easy task to start
with...imagine what it's like for a 7 years old.
have been much easier with my husband who is in the retail business. You buy things and you sell them and make
money in between. So for the first time,
I really tried to explain in simple terms what we do. Here is what her transcript
is a venture capitalist. She meets
people that have ideas for software, like Word and games and Barbie.com. She then chooses the one she thinks are good
and gives them money (I don’t like the give part, but invest seems to be a very
strange concept for her). Then those
people work on their idea, mostly writing on the computer. When they sell their idea and receive money, they give it to my mother. That’s it."
Sounds very simple, doesn’t it? Of course, we did not get into details like ownership, Limited Partnerships, value creation, liquidity constraints and patents etc. But she got the basis of it. It is all about great ideas and great people.