Part (2) Investing in startups is risky – 7 out of 10 will fail or will be lossmaking, i.e returning less than 1x (or the money invested).
Investors should invest in VC with eyes wide open.

In an earlier article video, Prof Claudia Zeisberger argues that VC funds choose to act in a risky manner by not diversifying, but that does not make the asset class risky.
Part (1) here:    • The RISKEXPLODING Problem with Ventu...  

In part (1) we asked: How to derisk VC portfolios?
The importance of lowprobability, excessreturngenerating investments means that proper diversification requires a portfolio of at least 500 startups. So yes, volume matters!
The golden rule for investors into the venture asset class must therefore be: Build a portfolio of 500 startups.
The full article on the topic is here:
https://www.institutionalinvestor.com...


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