Rather than trying to maximize the value of their I.P.O.’s, start-ups should align themselves with capital partners who are builders themselves, interested in sustainable growth and wary of unrealistic valuations. They should select board members committed to the long-term success of the company, compensating their directors with restricted stock. Founders should accept lower valuations in order to attract the right investors – financial partners who will invest in the brand, research and development and operational engine to create sustainable competitive advantage.

Harvard professor Bill George on The Long-Term Value of Internet Companies (via collaborativefund)

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