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A comment on Don't Take VC Funding – It Will Destroy Your Company. Parent comment

Re:Don't Take VC Funding – It Will Destroy Your Company by adrianN on Sunday July 09, 2023 @01:54PM (#36656938)
It is my understanding that VCs only stay afloat because the payoff in case of success is huge enough to offset many failures. And I guess many VCs also don't stay afloat forever.
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Re:Don't Take VC Funding – It Will Destroy Your Company by DeathArrow on Sunday July 09, 2023 @04:38PM (#36658627)
It is my understanding that most VCs expect only one in ten businesses to succeed, but that one is enough to offset the loss and ensure a profit.
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Re:Don't Take VC Funding – It Will Destroy Your Company by ymolodtsov on Monday July 10, 2023 @04:11AM (#36663410)
This is correct. For small and medium funds, a single successful portfolio company can return their entire fund with some multiple on top of this. The reason you invest in 30-40 companies instead of one is because you don't know which one it'll be.

I've seen this from the inside, I liked the company a lot but I'd never suspect it'd become the most obvious success for us.

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