Venture Capital Funnel Shows Odds of Becoming a Unicorn Are Less than 1%
New research from CB Insights shows the chance of investments in global tech startups really paying off is around 1% – further underlying the need for diversification in over 100 companies in your portfolio.
High conviction investors typically focus on 5-10 possibly 20 companies but new research underlines the increasing importance of diversification.
Low conviction investors typically focus on hundreds (or even thousands) of investments but find it nigh impossible to add meaningful value to their portfolio – so founders suffer upside risk by taking unfocused investors onboard their companies don’t reach full potential.
The Importance of Balanced Conviction
This is why Cooper & Co are leading a new wave of ‘Balanced Conviction’ portfolio investors that are focused (on Global Tech Startups) yet diversified (in around 150-250 companies) and yet still value added via a deep and unique venture network that discovers, distills and develops firms to add value in the investment portfolio.
You may also like to read –
- Venture Capital Funnel Shows Odds of Becoming a Unicorn Are Less than 1% – Original Article by CB Insight
- Cooper Venture Network
- Cooper & Co.