|
|
|
|
|
|
by brettproctor
963 days ago
|
|
|
These folks just put up a long post trying to weigh the risk v reward at various startup stages. Mostly summarized into: "Joining at Series C may give you an ideal combination of risk and reward. Series C startups had the highest weighted growth in our analysis, followed by Series B and A." https://www.joinprospect.com/blog/which-stage-startup |
|
|
1. They choose startups from 2014-2015. Valuations were (a) more reasonable then and (b) we've just been through one of the biggest bull markets of tech stocks in the past decades. 2. That taking the "Mean Valuation Growth" over that time period is meaningless if (a) there hasn't been a liquidity event and (b) if the mean is weighted by outliers (which it always is).
Portfolio / VC strategy is a bet on power laws. We, as employees, don't have that opportunity. That means we've got to be deliberate about who we join to try to hit a power law outcome.
Am I crazy here?