Nine out of ten startups fail, yet Europe keeps funding them the same way.
Governments replace judgment with bureaucracy, capital replaces experience, and failure is misunderstood instead of learned from.

This conversation exposes why venture capital is a profession, not a policy tool — and why getting this wrong quietly kills innovation.

In this episode, Jim Pulcrano, Adjunct Professor at IMD and longtime venture investor, explains why most venture capital systems fail before capital is even deployed.

Drawing on four decades across Silicon Valley, Europe, and academia, Jim dismantles the myth that VC success comes from spreadsheets, credentials, or government programs. Instead, he shows why pattern recognition, lived experience, and exposure to failure are the real differentiators.

As Jim puts it:
(01:13:27) “Silicon Valley is the world’s capital of failure — and also the capital of learning.”

That mindset difference explains why Europe struggles to scale founders, why governments unintentionally create zombie companies, and why operators consistently outperform theorists when backing the next generation of companies.

This is not a motivational episode.
It’s a structural diagnosis of how innovation ecosystems actually work — and where Europe still gets in its own way.

💡 What You’ll Learn in This Episode

1️⃣ Why most venture capital fails long before money is invested
2️⃣ Why governments cannot replace judgment, experience, or risk-taking
3️⃣ Why operators outperform bankers as investors
4️⃣ Why failure is data — not stigma — in high-performing ecosystems
5️⃣ What Europe must change to unlock its next innovation cycle

👤 About Jim Pulcrano

Jim Pulcrano is an Adjunct Professor at IMD with over four decades of experience across venture capital, entrepreneurship, and executive education. He has worked extensively in Silicon Valley and Europe, advising founders, investors, and institutions on scaling companies, leadership development, and venture capital as a professional discipline.

💬 Quotes

(01:13:27) “Silicon Valley is the world’s capital of failure — and also the capital of learning.”
(01:33:58) “You have to be there at midnight when you’re trying to make a decision on Sunday night.”
(01:40:14) “I’ve never met a successful entrepreneur who hasn’t been weeks from running out of money.”
(01:23:21) “A government purchase order is worth more than the same amount in cash.”

🧭 Timestamps

(00:04:25) Why most startups fail — and why that’s not the real problem
(00:09:55) Why Europe still misunderstands venture risk
(00:16:42) Why founders matter more than ideas
(00:24:13) Why governments create zombie startups
(00:32:34) Why operator VCs outperform financial engineers
(00:40:14) Failure as data, not disgrace
(00:48:26) Why venture capital cannot be taught without simulation
(01:04:48) What LPs should really look for in fund managers
(01:19:46) Government as customer vs government as controller
(01:30:10) Why young people should not rush into VC
(01:32:38) Why empathy separates great investors from average ones
(01:45:13) Leadership shifts from startup to scale-up
(01:50:06) Three changes Europe must make now

🎙️ Beginner’s Mind

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