The most important thing to understand in early-stage investing is that the only meaningful differentiation of a venture firm over another is the ability to uniquely align with the foresight of an outlier ready and able to break the norm. Meaning, merely an ability to raise and deploy money does not equate to the deployment of prudent risk needed to help an outlier achieve success.
To the latter point, deployment of funds dependent and steeped in deal fragmentation, deal syndication, and collusion, so common in today’s venture business, are almost guaranteed to tag outliers as a false negative. Meaning, despite the popular approach of most VCs to delay and defer subprime (uniform) risk, the proper approach to yield venture style returns is to seek outlier risk.
I suggest you study The (first ever) State of Venture Capital to avoid the same deplorable fate as 99.4% of all VC firms, dragging entrepreneurialism down with them in their subprime spiral. The same spiral that was unable to detect the value of Tesla until it showed up in their rearview mirror.
