3 ms·
I think he's referring to the distribution of VC-backed companies: since most will fail, the ones that win have to win really big. If all of the winners in a f
by tedmiston 10y ago
I think he's referring to the distribution of VC-backed companies: since most will fail, the ones that win have to win really big.
If all of the winners in a fund get acquired too early (small wins instead of big wins) it could mean the fund is not actually successful because it's not enough to outweigh the losses.
- msencenb 10y agoThis is accurate. Returns of VC portfolios follow a power law distribution. One or two companies generally return the entire value of the fund, and these tiny acquisitions are considered 'gravy'.