How venture capital funds make money: why one big win pays for all the startups that fail
The power law: how venture capital funds make money when most startups fail
Most startups in a venture capital fund bring back little or nothing. Yet a good fund still multiplies its money. How can a handful of startups pay for all the others?
-
1
About half of the fund's startups may fail. Rono still expects the bus drivers' money to grow many times over. He wants to see how, so Miva takes a sheet of paper.
-
2
She looks at one startup at a time and asks two things. What is the worst it can do to the fund? And what is the best?
The rest of this episode is for subscribers
Subscribe to read every premium episode. You can cancel when you want.
Paid yearly: $99 instead of $119.88