We believe in the power of numbers.
We take a portfolio-building approach to early stage investing. In other words, we make more bets than most other VC’s our size. It’s not quite “spray and pray,” as the armchair investors like to say. We like to refer to it more as “sprinkle and reflect.” We simply believe that given the unpredictable and binary nature of early stage investing, it’s better to have a bigger portfolio. If the best firms in the world have a 2% chance of investing in a startup that returns the fund, why would you only make 10 or 20 investments?
We’ve been doing this for more than a dozen years now and have seen multiple up and down cycles. Our system is designed so we just have to be a little bit correct and a bit lucky to hit outsized returns. On the other hand, even if we’re completely wrong on a few of our deals, they won’t significantly impact our overall performance.
About a third of our collective portfolio have either been fully realized (full exit) or partially realized (partial exit). While not all of them were ideal outcomes, we’ve been correct a lot more times than we’ve been wrong (touch wood) and have managed to deliver top quartile returns.
We also believe in eating our own cooking so we’re all meaningful investors in our own funds alongside our Limited Partners, many of whom have been with us from our first fund.