Never invest in a single startup

Vishal Jain
December 21, 2023

Let’s rewind to school days.

Remember probability class with a coin toss?

Once? 50/50 chance.

Five times? Odds play tricks.

Now toss it close to 100 times, and watch the magic happen as the odds fall into place.

Why? It’s all about the numbers.

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Now, let’s dive into the startup world.

Success odds? A modest <10%.

Sounds dicey, right?

Invest in 5, and can you truly bank on that 10%?

But throw in a hundred, and suddenly, probability starts dancing to your tune.

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The startup game, a smart, probabilistic adventure.

Downside? Only what you put in.

Upside? The sky’s not the limit; it’s just the starting point.

Enter the power law – where a few champs outweigh the rest.

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Easy to doubt startups; some even deserve it.

But hold up, there’s gold in that risk.

Those who get the power law, scoop the big wins.

Pessimists talk, but optimists are cashing in.

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Diversify, play with those numbers, and surf the startup wave.

Risk, reward, and a dash of optimism – that’s where the magic happens.

Don't invest in a single startup, invest in a portfolio.

invest in a portfolio of startups. Join misfits.
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