You invest $100 in a 100 startups, so $1 per startup.
Say now you want to double that and get $200.
75% just fail, so $75 are gone.
Which means you are left with $25 dollars.
According to evidence, 7% generate 60% of returns.
So $7 will generate $120 dollars (17-18x)
The remaining $18 will generate $80 (4-5x)
Do you see now why when you say you will 3x the VC money...they aren't interested? If you consider longer horizon, dilution and other legal issues, a fun might easily look at 50x.
Watch full episode on YouTube: https://youtu.be/G3qISgdPrx4
Listen to episode at https://rss.com/podcasts/twofounderspodcast/3209657
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