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Learn what makes a company a true VC fit, why power-law returns drive every decision, and the three non-negotiables investors look for before writing a cheque.
Learn what makes a company a true VC fit, why power-law returns drive every decision, and the three non-negotiables investors look for before writing a cheque.
Tools:
• VC Fit Checklist
• Founder Readiness Questions
VCs are hunting for companies that can grow unreasonably fast, in large accelerating markets, and have a chance at becoming category leaders.
You already know startups are risky; the numbers sharpen that picture. Roughly 70% of VC-backed companies return less than the capital invested. Only 1–2% become billion-dollar category leaders.
Why does VC still make sense? Power-law returns. A single Canva-sized win can repay an entire fund, many times over. Covering scores of write-offs.
Portfolio theory in practice