Icing on the cake.
Above and beyond the traditional reasons to invest in exciting and disruptive start-up companies, the ability to build the organization from the ground up - starting with a blank sheet in the context of corporate culture and organizational structure is another reason I prefer investing in small private companies (rather than large public companies.)
Many large companies succeed (more or less) despite their internal organization and cultural paradigm. It is a problem to be overcome. (Although few management teams of such companies would admit to this I fear.) Most new, small companies can build a 21st century workplace and culture. It is an additional (bonus) source of competitive advantage.
If you have 20 minutes, have a listen to my friend and ex-colleague JP’s presentation at LeWeb3 (December 07) if you want a good explanation of how the enterprise is likely to evolve (thanks to Mike for the pointer):
