Re: Off-topic. Very Interesting Day
raising $10 million dollar per group with each group having 10 start up companies in them, meaning that the investors will not just be working with one company that needs to hit in order for he investors to make a profit but with 10 companies. If only 1 of the companies makes it big,
If we are talking about real **startups** with a typically 90% failure rate and 1%
"unicorn" rate, then a group of 10 companies is not enough to diversify and
compensate for risk.
You probably need a fund of 100. This means that your friends as long as they keep
spinning new funds (groups of 10 companies) will have the statistics on their side,
but individual investors in one fund, on the average will be losing their shirt.
A startup usually has two important characteristics:
So, a startup is in essence, a business experiment with potential. This means that real startups are prone to failure by definition.
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|Msg #||Subject||Author||Recs||Date Posted|
|479310||Re: Off-topic. Very Interesting Day||Luckyone581||0||1/30/2023 10:39:48 PM|
|479314||Re: Off-topic. Very Interesting Day||Wilk||0||1/30/2023 10:58:47 PM|