3 ms·
Nice, clear statement of the fundamental theorem of VC funds: ...the only realistic way for a fund to get acceptable returns is to try to find only the companie
by HillaryBriss 9y ago
Nice, clear statement of the fundamental theorem of VC funds: ...the only realistic way for a fund to get acceptable returns is to try to find only the companies that could be the next Ubers, Facebooks and Airbnbs. Under these rules, it doesn’t make sense for VCs to invest in anyone that can’t get to unicorn stage. There’s just no place for “average” companies...
- JumpCrisscross 9y ago> There’s just no place for “average” companies Sure there is: bank loans, growth capital, corporate backers through a JV, et cetera. This is how new business was financed for centuries. If you're talking about companies that grow up to be "average" but still fail at the rate and with the recovery rates of aspiring unicorns, then ofcourse not.