3 ms·
The VC model has to consider the expectation that most investments will be a complete loss. To have even a hope of ~20% return every investment has to have a pa
by obventio56 5y ago
The VC model has to consider the expectation that most investments will be a complete loss. To have even a hope of ~20% return every investment has to have a path to $xxxB. Otherwise it’s not worth including.
- bpodgursky 5y agoYes, this is a huge misunderstanding of where the returns from VC come from. It does not come from "moderate success". That's hopeless, given the fail rate. If you have a safe path to 20% or even 100% returns, just get a loan. There's absolutely not point in the VC process at that level... or reason for them to exist.