How venture capital funds make money: why one big win pays for all the startups that fail
Why venture capitalists say no to good small businesses
A small company makes a profit every month and could sell for millions one day. For a venture capital fund, that is often not enough. One calculation about the size of the fund explains why.
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Two founders come to see Miva on the same day. The first runs a small company that already makes money every month. If all goes well, it could sell one day for $30 million.
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The second loses money and has a big dream: to be in every city in the world. Miva says no to the first and yes to the second. Is she being reckless?
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