Every VC says they are looking for great founders that are solving real problems in big markets. So why is it that so many “good” companies that seemingly meet these requirements still fail to raise money from VCs?
Venture capital is a hits driven business, with ~4.5 percent of dollars invested generating ~60 percent of total returns. This is why the VC model is built on the expectation that most returns will come from companies that pay 10X+ on investment, and on the expectation that many investments will lose money.
