Everything that becomes successful is an improbable anomaly. Any company in the S&P500 is an extreme outlier. That’s the whole point of the venture model — you know 95% of startups won’t succeed, but 5% might return multiples of your investment and 1% might return multiples of your entire fund. But often not. Hence why the average VC fund can’t beat the S&P. This is how it has always been.
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Maybe but Apple, Google, and Microsoft are improbable anomalies.
Everything that becomes successful is an improbable anomaly. Any company in the S&P500 is an extreme outlier. That’s the whole point of the venture model — you know 95% of startups won’t succeed, but 5% might return multiples of your investment and 1% might return multiples of your entire fund. But often not. Hence why the average VC fund can’t beat the S&P. This is how it has always been.
Exactly my point. The above comment is trying to make a point with cherry picked data.
They are. That’s why they’re called “unicorns.”
Most startups fail regardless of the economic climate.
No, a unicorn is simply a private company valued at $1B or more.
Apple, Google and Microsoft are on an completely different level of anomaly.