Given the exponential returns possible from just one big exit, the bar for success is not that most companies do well but just a couple. It would seem odd then

Given the exponential returns possible from just one big exit, the bar for success is not that most companies do well but just a couple. It would seem odd then that the accelerator would invest in the others, but since there is relatively little information available at the time of funding, it becomes a numbers game. Given that the instincts of the accelerator are good, there is no reason not to invest in as many companies as possible to catch a few stars in the net. To the outside world however, it looks like a bunch of failures.