Tip - 50 investments in Startups, you have a 96.9% chance of at least doubling your money
50 investments in Startups, you have a 96.9% chance of at least doubling your money
MY TAKE AWAYS
We set out to answer the question of: “How many investments should an angel/seed investor make to be adequately diversified?” Assuming our probabilities of outcomes hold true:
At 20 investments, you have a 98.7% chance of at least getting your money back (> 1x). This is probably the minimum number of deals I would look to have in an angel portfolio.
At 50 investments, you have a 96.9% chance of at least doubling your money (> 2x).
At 500 investments, you have a 96.2% chance of at least tripling your money (> 3x). As you diversify through volume investing, the closer you get to being assured of your.....
By: Alex of Lion Fund
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