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February 13, 2012
Brattle Academic Advisor Josh Lerner Quoted in Financial Times Article on the Growth of Venture Capital

Josh Lerner, a Brattle academic advisor and the Jacob H. Schiff Professor of Investment Banking at Harvard Business School, was quoted in a February 8, 2012 Financial Times article discussing the rise of venture capital.

In the article, “Don’t put venture capital at risk,” author John Gapper explains how venture capitalism has been characterized as a small and private industry, which has been essential to its success and strong reputation. The industry is still recuperating from damage caused by the “dotcom” crash of the 1990s; however, several elite firms have dominated. As the industry grows, the author warns that venture capitalism could risk undermining the qualities – small, private, and entrepreneurial – that led them to success.

Dr. Lerner, who specializes in the structure and role of venture capital and private equity organizations, explains how venture capital firms rely on heavy risk-taking by investing in a variety of start-up companies in the hopes of discovering a few big winners.

To read the complete article, please visit the Financial Times website.