ย โขย
Helixworks Technologiesย โขย 1m
Startups donโt need to be profitable earlyโjust valuable. Most fail, but VCs donโt need all of them to succeedโjust a few outliers. Venture returns follow a power law: a tiny percentage of startups generate nearly all the returns. A typical VC fund invests in 50 companiesโ40 will fail, a few will break even, and 1-2 will be massive hits that return the entire fund. Thatโs why VCs chase high-risk, high-reward bets. Theyโre not looking for steady profitsโtheyโre hunting for unicorns (or Indicorns). Also, VCs get paid regardless. They earn management fees (2% per year of the fund size) and take 20% of the profits (carry) from exits.
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