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Right, even VCs don't know the answers. But the difference between a VC and a founder is that a VC invests in 100 companies not knowing which will succeed, but
by acegopher 5y ago
Right, even VCs don't know the answers. But the difference between a VC and a founder is that a VC invests in 100 companies not knowing which will succeed, but a founder only is investing in one.
- webmaven 5y agoAnd since VCs make practically all of their returns from that one hypergrowth 1000x company, they can push founders to swing for the fences even though that also makes startups more likely to fail. For many founders, a 5x return would still be a life altering result, but to most VCs that doesn't really move the needle. It's nicer than 0x of course, but no more than that.