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More on the "VC Math Problem"
- ram1024 17y agothe thing about this is, it's not like there's only 100 good companies that need funding, and once they're out no more capital invested is worth a damn. let's say up to 100 your getting maximum exit returns. then 25 above that you're getting 90% cause more of the good ones have been taken leading to more that don't go anywhere. but you're still getting 122 exits. then the 25 above that you get 80% leading to 142 exits out of 150 investments. i simplified the math to explain a principle. it's never that the max capital has been reached and there's NO MORE good companies left needing funding at all. set up programs like YC and techstars and you WILL find something good