3 ms·
It works both ways. 1. In a verticalized approach, your startup risk approaches your sector risk, if pool is large enough. 2. In a stage based pool approach (
by csentropy 6y ago
It works both ways.
1. In a verticalized approach, your startup risk approaches your sector risk, if pool is large enough.
2. In a stage based pool approach (sector agnostic), risk is more diversified but rankings will be less meaningful. For ex, a rocket company founder may not be a good judge of CPG companies.
- gadders 6y agoFair points. Does it depend on what you are hedging against, maybe? i.e. "my startup not being successful" vs "the economy tanking/oil prices trebling/whatever".
- csentropy 6y agoIt does. In a verticalized approach, if you pick the right sector (biotech for ex) and other founders see the value in your work, you can get rewarded even if your company fails for reasons to of your control. Even in a shock scenario, there are sector winners (see biotech and funeral homes in covid pandemic)