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Defensibility Through Regulatory Constraints

September 6, 2009

An interesting video featuring Prosper co-founder Chris Larsen and Jim Breyer of Accel Partners, recorded in late 2006 as part of an Entrepreneurship lecture at Stanford.

Larsen and Jim Breyer, Managing Partner at Accel Partners, stress the value of having approval in a regulated industry.  This provides an excellent barrier to entry and is very attractive to VCs. Larsen draws on his experience from E-Loan and Prosper in suggesting that while it is cumbersome, if an idea is in the interest of the consumer, it is not difficult to obtain approval.

I was unable to get this video to embed properly, so here is the link to the video.

2 Comments leave one →
  1. Fred93 permalink
    September 6, 2009 3:47 pm

    I loved CL’s comment “Most financial startups are run by crooks.”

  2. Kyle permalink
    September 21, 2009 8:08 pm

    Just so we’re on the same page, you’re saying that the co-founder of Prosper gave a presentation on how important it is to be approved while running a company that was operating sans-approval?

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