
Why VCs are obsessed with Unicorns (we do the math) - bilbopotter
https://youtu.be/ko0n3nOL034
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shortweb3
One of the astute comments on this by Terence Lam: Terence Lam Stage one:
invest $25K in 100 startups ($2.5M) Stage two: pick 20 of them and invest
$100K in them ($2M) Stage three: pick 4 of the 20 and invest $500K ($2M) Stage
four: pick 1 of the 4 and invest $5M in that ($5M) the "expected" exit value
of a startup is different in different stage, and most often this is non-
linear: the expected exit value increases quadratically when a startup move
from stage one to stage four. $11.5M invested ;) (ignoring the management fee
:p)

Another hidden benefit: startups in stage three or four may "acqu-hire"
startups in stage one or two, and the VCs who know and engage with them are
the good middlemen here to facilitate the deals.

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shortweb3
Interesting in the video she says most funds don’t achieve 1x - is that true?

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karimford
Because they are so heavily invested in them.

