Fewer Losers, or More Winners?
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Fewer Losers, or More Winners?
In an industry of outliers, many allocators have ignored outliers for a long time and preferred funds that are sustainable, process-driven , big enough to scale relationships, often to settle with 3x returns over 12 years with no clear path to liquidity.
An Allocator's Manifesto: Setting the Stage
The central point of the post below is that risk is the product of venture capital, and some managers understand that better than others.
Many of the replies talk about the futility of 'financial engineering', and how concepts like portfolio construction are less relevant to early stage VC due to the greater... See more
In other words, which of the following investment strategies should you use: (1) making a lot of investments so as not to lose out on some good opportunities and, as a result, living with some failed investments, or (2) being highly selective to avoid making bad investments, thereby missing out on some good investments?