> But for imperfect VCs, it might be worth it to invest in 50 just to approach 100% chance of capturing these 5 top performers, the 45 others are just the cost of doing that.
Yep! This is exactly how most funds operate. They invest in 30 or 40 companies over 3-4 years with the hope that 30-40 is enough to hit 1-2 big winners. The more confident a VC is in their picking skills, the more likely they are to invest in 15 or 25 companies in a fund, instead of 30+.
Yep! This is exactly how most funds operate. They invest in 30 or 40 companies over 3-4 years with the hope that 30-40 is enough to hit 1-2 big winners. The more confident a VC is in their picking skills, the more likely they are to invest in 15 or 25 companies in a fund, instead of 30+.