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This is right analysis. However, ROI might be lesser but risk of failture would be lesser as well ? But, there is chance that we *"might" become a brand for IPh

This is right analysis. However, ROI might be lesser but risk of failture would be lesser as well ? But, there is chance that we *"might" become a brand for IPhone apps development. If you can build reuseable libraries, then i beleive you can scale faster ?

pg 18y ago
Venture investors are not looking for things with a low risk of failure. In fact, all other things being equal, we're looking for the things with the highest risk of failure-- like starting a new search engine in 1998.
- khurrams 18y ago
  I agree !
- Retric 18y ago
  It's not that they like risk the are just more willing to invest at high risk than most people. Would you drop 10 Million for a 1 in 500 chance of 10 Billion dollars? It's a good bet bet but it can take a while before your first hit.
  - motoko 18y ago
    Would I spend 1e7 make an investment with an expected value of 1e9*(1/.5e3) = 2e6?
    - motoko 18y ago
      Hm, on closer inspection, I would for 10 billion and an average 2x return. I sure that wish I could delete both these comments.
- DabAsteroid 18y ago
  Venture investors are not looking for things with a low risk of failure. Doug Richard (of BBC's Dragons' Den) says the same thing, here (starts at 4:10 of 6:57; moneyline at 5:30): http://www.youtube.com/watch?v=Z71dl3lZdvU http://www.youtube.com/watch?v=Z71dl3lZdvU You have to understand how investment works. The reason it [the risk-focused pitch] works well is because if there is no risk, there cannot be commensurate reward. I'll repeat it. If there is no risk, there can't be reward. If it's not a risky opportunity, then there's no reward of equal dimension. If you come to me and say, "I've got a risk-free investment," the first thing I know is, there's not much money to be made. There's no free lunch in this world.