Figuring that 90% of startups fail in this manner, he has a 10% chance of hitting a jackpot. But then he's ruined 90% of the startups that didn't do so well in

Figuring that 90% of startups fail in this manner, he has a 10% chance of hitting a jackpot. But then he's ruined 90% of the startups that didn't do so well in order to do it. Let's say he funds 1000 startups that is $8M invested, he loses $7.2M in investment money due to a 90% fail. But 10% go on to earn him one million dollars in company stock each. That is a $100M earnings minus the $7.2M loss $92.8M in profits. But if he gets a Facebook Zuck IPO in billions, well he found a diamond in the rough, have won the startup lottery. But you have to ask, why aren't more investors doing this?