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Buying 10 lottery tickets instead of 1 makes no practical difference to the odds of winning. Of course every VC, CEO, and founder will say otherwise, since the
by simplecomplex 8y ago
Buying 10 lottery tickets instead of 1 makes no practical difference to the odds of winning.
Of course every VC, CEO, and founder will say otherwise, since they're incentivized to get people excited about their investment. VCs also place more bets in a single year than the number of startups anyone could hope to work at in a lifetime.
- ummonk 8y agoBut you can improve your expected returns if you get to double down on one of your lottery tickets when you know it has a high chance of winning. You invest little time in the startups that seem likely to be unsuccessful, and a lot more time in the startup that is on a path to success.
- ttul 8y agoAnd this is why most people should just get a high paying engineering job and invest whatever excess into an angel fund.