So, Inception investing at this scale is real? You only imagine friends and family, and nowhere near the figures mentioned here. Do we have success stories or at least recent investment news?
Think YC, Antler, Techstars, EF, SOSV, PearX... their strategies are high volume of companies + low valuation discipline + high fund-through rate. These firms are creating systematic alpha due to the relationship of these three things.
For example, if you invest in 200 companies at $2m valuation and fund-through is 50%, then your resulting seed portfolio is 100 companies at an effective $4m valuation. The average price of a seed round is ~14.4m, so you're effectively marked at 3.6X on the first round with diversification that is ~5X greater than a direct seed fund.
So, Inception investing at this scale is real? You only imagine friends and family, and nowhere near the figures mentioned here. Do we have success stories or at least recent investment news?
Think YC, Antler, Techstars, EF, SOSV, PearX... their strategies are high volume of companies + low valuation discipline + high fund-through rate. These firms are creating systematic alpha due to the relationship of these three things.
For example, if you invest in 200 companies at $2m valuation and fund-through is 50%, then your resulting seed portfolio is 100 companies at an effective $4m valuation. The average price of a seed round is ~14.4m, so you're effectively marked at 3.6X on the first round with diversification that is ~5X greater than a direct seed fund.