;#Faculty News;# | Economist | 07 Dec 2011
Cautious capitalism
Re: Ramana Nanda & Matthew Rhodes-Kropf
But there is an alternate view. Ramana Nanda and Matthew Rhodes-Kropf, from the Harvard Business School, argue that rather than funding weak start-ups, bull markets allow investors to bet on experimental and innovative ventures. Their research finds that firms that are started at the top of an economic cycle are more likely to fail, but if they succeed, they create more value. This implies that new or disruptive technologies may find it hard to get funding in a down cycle, since venture capitalists are focused on safe investments.

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