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> “the best venture capitalists in the world still strike out most of the time. That’s just the nature of the beast." Then what makes them the best VCs? The fa
by personjerry 10y ago
> “the best venture capitalists in the world still strike out most of the time. That’s just the nature of the beast."
Then what makes them the best VCs? The fact that they got lucky once and now sit on a pile of money? I tend to lean towards Black Swan theory here, believing that successes in these extremely outlier situations are not representative of the "best". It's like you won the lottery and claim to be "the best lottery player".
- dilemma 10y agoWhen investing, first-time investors don't choose between all startups that exist in the entire world, or even just their city. They choose between those startups they have access too, which is a much much smaller number. So what the best VCs have done is build a good network, rather than used extreme intellects or investment models to make their decisions. Also, as firms grow, they lose touch to the scene, and that is probably why its hard to make good repeat investments. The next Facebook isn't necessarily in your network.