Venture capital requires betting on a basket of companies because most will fail and you can't predict which ones. An investor who backed two companies saw one acquired for 1.6× returns in four months, but that was luck, not skill.
May 18, 2025.
1.6× in four months.
The only guarantee I can ever make my investors is some of our companies are going to be zeros. We know we're going to lose all the investment that we've had in specific companies. I just don't know which ones. Right. I had one investor who invested in only two companies. One of them was acquired in four months. Acquisition. Sorry, a good acquisition. Yeah. Made 1.6 times their money in four months. And he thought he was a genius. And I told him he was lucky, you know, if other investors that, you know, you can invest in five different companies and all of them could be zeros. So having a basket of companies knowing that there's going to be failures in there is really, really important, especially when you're investing in venture capital.
