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That's assuming every single one of your investments gets 10x. Any kind of very naive exponential assumptions are going to look silly quite quickly. Besides oth
by greendestiny 16y ago
That's assuming every single one of your investments gets 10x. Any kind of very naive exponential assumptions are going to look silly quite quickly. Besides other people would be willing to take on those investments even if they are too small for these incredibly lucky super angels.
- csallen 16y agoWell, it's assuming your investments average 10x yearly. Of course some will tank and some will get more than 10x. But my point is that, over 6 years, you won't be able to get 10^6, or really anywhere near that, because: (1) That would require re-investing all your returns, and as PG mentioned most of them have to go back to your limited partners. (2) Even if you could re-invest all your returns, it would be impossible to maintain an average of 10x yearly with that much money. So the super angels can't really expect to find phenomenal success by just looking for quick exits. They need big exits too. Which means caring more about finding winners and less about valuations.