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"I’ve started four companies in the past with a mixture of exits and bankruptcies, so I understand that this is what startups are supposed to do, [...]." As so
by spupy 10y ago
"I’ve started four companies in the past with a mixture of exits and bankruptcies, so I understand that this is what startups are supposed to do, [...]."
As someone completely unfamiliar with the world of startups, this sentence baffles me. If this describes your track record, how do you even get funding? Obviously I'm not an investor, but this sentence alone is a massive red flag.
- bshanks 10y agoMerely knowing that something often or even usually fails is not enough information to conclude that it's a bad bet -- in order to compute that, you also need to know how much money it makes when it succeeds. For example, if you expect something to fail 80% of the time but to gain >400% the other 20% of the time, then the bet has positive expected value.
- exclusiv 10y agoIf you've done more than a few startups - you'll have some failures. Think of the success rate of startups as a whole. It's like 10%. So if you are at 50%, that's a reasonable bet.