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So for example, if a venture has a (subjective) 10% chance of success I recently asked a VC on how they evaluate risk in their portfolio, and do they bucket in
by prakash 18y ago
So for example, if a venture has a (subjective) 10% chance of success
I recently asked a VC on how they evaluate risk in their portfolio, and do they bucket investments into low, medium & high risk and how they identify & classify each of these investments into various buckets -- his answer was simple, they would invest in any company that could potentially get them a 10x return -- as simple as that.
- gravitycop 18y agothey would invest in any company that could potentially get them a 10x return It's like an SAT score, though. If 10x is borderline, to be competitive against other funding-seekers you should be approaching VC's with much-riskier (e.g. higher-return) opportunities (100x; 1000x; etc.).