3 ms·
So, he thinks it's best for entrepreneurs to ramp up the volatility, because a 90% chance of failure with a 10% chance of $100M is the way to go. Advice from a
by SiVal 11y ago
So, he thinks it's best for entrepreneurs to ramp up the volatility, because a 90% chance of failure with a 10% chance of $100M is the way to go. Advice from a guy with his own risk spread over a portfolio of such companies to a guy whose whole net worth is invested in one company that has a 90% chance of wipeout.
Hmm. Maybe there's something to that estimate he makes about how harmful VC advice tends to be.
- deleted 11y ago[deleted]
- danieltillett 11y agoYes. Watch what VC do with their own money and ignore what they tell entrepreneurs to do. They offer a great role model of what you should do.
- notahacker 11y agoIronically, VCs prioritising "10% chance of $100M" as the way to go was exactly what I thought of when I saw the headline suggesting they actually tend to reduce the potential of the company There's no shortage of perfectly viable $xx million businesses pushed into chasing an [ultimately optimistic] hypothesis there was a 10% chance of breakout success which, when the mass market turns out not to exist, leaves them with the potential to achieve nothing other than failure.
- jgalt212 11y agoIf life were only so simple, now it seems VCs are pushing founders to make the following bet: .1% chance of $5B+ and 99.9% chance of failure. In short, lots of potential $100MM companies are being done in by VC greed. This is only one data point, but I know an entrepreneur who was turned down by a blue chip VC because the VC said he saw a clear path for the biz to $100MM, but the path above that level was much murkier.