TAKING RISK

Summary from the TLDR newsletter

Startup founders in the US imagine the range of possible scenarios and pitch the top one percent outcome. This approach matches what venture Capitalists are looking for - it's an industry based on outlier returns. While most investments will fail completely, some will make a modest return, and a small percentage will be worth a thousand times what was paid initially - these successes easily pay for all of the other failures. The downside of early-stage investing is losing 1x your money, but the upside is that you make 1,000x - this is where you should focus your attention.