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This seems to be in stark contrast to some of Peter Thiel’s theses. Would love to know if someone can clarify that. He argues since returns are distributed by
by baxtr 6y ago
This seems to be in stark contrast to some of Peter Thiel’s theses. Would love to know if someone can clarify that.
He argues since returns are distributed by a power law, more due diligence and fewer invests make more sense for VCs.
- CuriouslyC 6y agoThe truth is that regardless of how well put together a firm is, break-out success is a crap shoot. A VC strategy that maximizes potential revenue (by heavy due diligence) is almost always going to end up with lower actual revenue than a VC strategy that attempts to maximize actual revenue, by having a larger, diversified basket. If the terms of the initial funding give the VC first crack/options for later rounds, all the better.