4 ms·
Pretty sure VCs are looking for closer to 100x than 10x. Additionally, this is survivorship bias. You can find lots of very risky investments that will pay 10x
by hx8 3y ago
Pretty sure VCs are looking for closer to 100x than 10x.
Additionally, this is survivorship bias. You can find lots of very risky investments that will pay 10x if they mature.
- s1artibartfast 3y ago>Additionally, this is survivorship bias. The applicability of survialship bias depends on if you are assessing government investment success in general, or SpaceX success. Time has shown that a few research contracts for spaceX were objectively a good bet. >You can find lots of very risky investments that will pay 10x if they mature. yes, but it is harder to find investments that do mature and pay 10X.
- robocat 3y agoVC funds themselves are poor investments: "VC returns haven’t significantly outperformed the public market since the late 1990s, and, since 1997, less cash has been returned to investors than has been invested in VC". They want 100x returns from their one winning investment, but most VC funds fail to find their unicorn. Yes, selection bias, but also conflating funds with unicorns!