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Since A. 1% of $10B is $100M, and B. 10% of $100M is $10M, who wouldn't take A?
by gcanyon 5y ago
Since A. 1% of $10B is $100M, and B. 10% of $100M is $10M, who wouldn't take A?
- lazide 5y agoSomeone who isn't willing to take the higher risk of A? Pragmatically, to get to A, you need to make different decisions that don't always work out - and feel scary to those involved a lot more. It's why higher risk usually correlates to higher returns (if it works)
- gcanyon 5y agoAh, okay, it wasn’t clear to me that you were talking about probabilities of success rather than shares of the company. Thanks for clarifying!
- lazide 5y agoIt’s about perceived possibilities and decision making really. Will someone be able or willing to make decisions which can result in x percent of a larger company, or will they require a larger percent of a company - and hamstring it, or stop it from growing.