Startups face a trade-off between short-term profitability versus long-term growth where investors tolerate prolonged financial losses. We present a new theory and empirical evidence about the existence and shape of so-called J-curves. The theory predicts that investors facing better exit...

"When it comes to how to succeed as an entrepreneur, we are besotted with advice. According to bestselling author Alan Weiss, success is a combination of opportunism, very disciplined work, luck, timing, and ignoring most advice. In other words, it means striking out on your own, original path...