Business Definition

Interesting post on EarlyStageVC about the venture capital model and firms investing from early stage venture capital to public markets.

The post included three simple questions to assess if two lines of business are the same business.

  1. Do they serve overlapping sets of customers? (Shared Customers)
  2. Do they share overlapping sets of competitors? (Shared Competitors)
  3. Can you invest in one line of business and materially impact your cost position in the other? (Shared Costs)

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