Silicon Valley Daily

Given today's acquisition news, a reminder that entry price is hugely important in angel / venture investing.

Here's a good concrete example of what a "unicorn" is worth at different entry prices.

https://blog.zactownsend.com/empathy-on-entrance-price-bridge-dot-xyz-and-astranis

Working on Farcaster and Warpcast. Longer thoughts at https://dwr.email

But what do you do with this?

Pass on an investment that’s going to give you a 20x return?

In most cases investors aren’t in a position to negotiate price as they’re not the lead. And even then there’s competition for the best investments which pushes up price.

Building getinboxzero.com and sharemint.xyz.

I also run a YouTube channel, "Learn from Open Source": youtube.com/elie2222 

You have to assume that 90% investments are a zero. So you need the outlier returns to make the IRR worth it.

If you're trying to return a fund (to raise another fund), yes.

If you're an angel investing to support a friend / make money / pseudo entertainment and status, then no.

and I think that number is fairly accurate if you are focused on seed / series a

That number isn’t accurate.

But even assuming it’s 90% failure, does this mean you pass on the more “expensive” rounds and still get the exact same 90% failure rate?