Smart-as-a-whip VC Sim Simeonov did some math and some simulations and came up with the conclusion that a large “portfolio effect” has a major, almost overwhelming, effect on the financial returns of e.g. angel and seed VC portfolios. English translation: make a LOT of small bets in order to win. (Even if most of those [...]
Posts Tagged ‘snowflake’
Hint: Nobody Has Any Idea How This Thing Works
In Venture Capital, we have lots of rules of thumb for assessing entrepreneurs. Some such rules are: Invest in guys who are already rich, because they have fewer distortions in their motivations. Invest in guys who aren’t already rich, because they’re hungry. Invest in guys who have put their own wealth at risk, because they [...]