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by barry-cotter
2107 days ago
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> East Coast VCs are much more conservative, which is actually better in a longer term because it results in more stable return rates (less failure). Returns are power law distributed, not normally. You want to increase your variance, not minimize the chance of the fund not returning anything. VC’s investment thesis is not based on making solid returns that aren’t that risky. It’s a bunch of minimally correlated bets, most of which will return nothing, some of which return 100x their investment or more. Stripe and AirBnB are the majority of the value of YC’s investment portfolio. |
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