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That too happens. But, when the money is from a third party, the risk apetite plummets, usually.
by kumarvvr 6y ago
That too happens. But, when the money is from a third party, the risk apetite plummets, usually.
- lisper 6y agoThat's only true if the allocation decisions are being made by a third party like a VC because the third party usually has fiduciary duties (otherwise you have problems with conflicts of interest). But if the billionaire is investing his/her own money I see no reason their risk posture should be any different whether they're investing in their own venture or someone else's.
- kumarvvr 6y agoExactly. That is what the original commenter meant. If there are Elons out there with no money, they could band together to go to a VC, but then the risk taking process is skewed, because the brains and brawn are distributed.