links for 2010-11-02

  • One of the principles of game theory is that you should view the game through your opponent's eyes, not just your own. This past spring, the Patient Protection and Affordable Care Act (President Obama's health reform) created a system of extensive federal subsidies for the purchase of health insurance through new organizations called "exchanges." The details of these subsidies were painstakingly worked out by members of my own political party to reflect their values: They decided who was to benefit from the subsidies and what was to be purchased with them. They paid a lot of attention to their own strategies, but what I believe they failed to consider properly were the possible strategies of others.
  • Many of us may recognize Professor Bulent Gultekin as the brilliant, demanding man on the other end of a cold call gone wrong. But Professor Gultekin is multilayered: Assistant movie director. Advisor to the Turkish Prime Minister. Founder of universities. Creator of privatization programs in Poland and other former Soviet Republics. Here are some insights into one of the greatest international educators at the Wharton School.
    (tags: wharton)
  • Over the last 2.5 years I made 15 angel investments with my own cash. Although I have made a decent amount of investments, I don’t consider myself an “angel investor” because I don’t search for companies to invest in, I don’t lead financing rounds, and I don’t know how to read term sheets. When I first started investing I did it because I wanted to make more money, but I started enjoying investing in startups because it was teaching me a lot about entrepreneurship. For the last 9 years I have been an entrepreneur and over the years I heard both good and bad stories about investors. But I never really understood what investors went through until I started investing my own cash into companies that weren’t mine. Here’s what I learned about entrepreneurship through angel investing:
  • It’s possible to get financing from top tier investors if you’re located outside Silicon Valley, New York or Boston, but if you land venture or angel investments from remote investors, expect to go back to investors often for more rounds of cash. A recent study by Indiana University finance professor Xuan Tian found that entrepreneurs who raised capital from investors located more than 25 miles away were forced to raise smaller amounts, with a shorter duration between each fundraising round, than those with nearby investors.

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