4 ms·

1. If we knew the factors to make successful companies vc would not fund 90% of companies that fails 2. We don't know what has made a company succeed, so succ

• brabel 5y ago
  > vc would not fund 90% of companies that fails Imagine if VCs were so good at spotting success that 90% of companies they funded were successful. They would then be able to fund a LOT of companies... but is there even a chance that there's actually room for so many new companies? Eventually, the rate of success would need to drop drastically, you can't just inject thousands of new companies into the world and expect them all to succeed. I always think about it like this: how many new services have I or my company actually purchased during a year, or even might want to purchase if we just had perfect knowledge about all these new companies coming up and had actual need for many of those? I can't think of it being more than one or two at most. Now, spread that over the whole population and you'll probably find that on average, only one or two companies could possibly enter any field successfully on any given year. And guess what: that's pretty much what we see in the real world.
• deleted 5y ago
  [deleted]