Einar Vollset

And I think really that's part of the reason why you would invest in a fund. Because if you look at it, say you have an amount to invest in, whatever that is, 100,000, 250,000, 500,000, whatever it is. Okay, well, if you do your research and look, you realize you probably shouldn't just pile into just, you know, a single bet, like put it all on black as it were.

And I think really that's part of the reason why you would invest in a fund. Because if you look at it, say you have an amount to invest in, whatever that is, 100,000, 250,000, 500,000, whatever it is. Okay, well, if you do your research and look, you realize you probably shouldn't just pile into just, you know, a single bet, like put it all on black as it were.

So instead, what you want to do is you want to go out and you want to make a lot of bets, ideally. Like you probably, I think like the math pretty much says, like, you know, if you're going to have a better than 50% chance of at least breaking even, you should be making at least, I think it's somewhere like 15 and 20 bets, like investments rather than bets. I shouldn't call it bets. Yeah.

So instead, what you want to do is you want to go out and you want to make a lot of bets, ideally. Like you probably, I think like the math pretty much says, like, you know, if you're going to have a better than 50% chance of at least breaking even, you should be making at least, I think it's somewhere like 15 and 20 bets, like investments rather than bets. I shouldn't call it bets. Yeah.

20 investments. But if you think about, okay, how do you do that? If you have $100,000, you say, okay, I believe the math. I want to put $100,000 in. Now you have to write 20 checks of $5,000 each. Now you have more problems than when you started because do you have the deal flow to find 20 quality investments?

20 investments. But if you think about, okay, how do you do that? If you have $100,000, you say, okay, I believe the math. I want to put $100,000 in. Now you have to write 20 checks of $5,000 each. Now you have more problems than when you started because do you have the deal flow to find 20 quality investments?

Are you going to see enough good deals just from your networks and friends and connections and whatever, an angel list or whatever, in order to make that, those investments? And I would argue that most of the time you don't. Like you don't see the, you don't get to access the deal flow. You don't have it. But even if you did, so say you were uniquely well-connected, now it's like, okay,

Are you going to see enough good deals just from your networks and friends and connections and whatever, an angel list or whatever, in order to make that, those investments? And I would argue that most of the time you don't. Like you don't see the, you don't get to access the deal flow. You don't have it. But even if you did, so say you were uniquely well-connected, now it's like, okay,

Now you need to convince people to take a small check from you individually. Like so now like most people aren't going to take like most people who invest like an individual investor that goes along and says, all right, well, you know, I want to put $5,000 in.

Now you need to convince people to take a small check from you individually. Like so now like most people aren't going to take like most people who invest like an individual investor that goes along and says, all right, well, you know, I want to put $5,000 in.

It actually can be quite hard to even if people are raising money, it can be quite hard to get people to accept $5,000 because it's such a small check. So there's usually like a minimum before you have to get in.

It actually can be quite hard to even if people are raising money, it can be quite hard to get people to accept $5,000 because it's such a small check. So there's usually like a minimum before you have to get in.

And quality investments, like, you know, like a friend will do it. That's great. But like, how many friends do you have? Do you have 20 friends that are really, truly, rigorously, like is high quality and that you can put $5,000 in? Yeah. starts to get difficult. And then, you know, on top of that, like once, even if you get passed, like, can I even get my checking? Can I get the deal flow?

And quality investments, like, you know, like a friend will do it. That's great. But like, how many friends do you have? Do you have 20 friends that are really, truly, rigorously, like is high quality and that you can put $5,000 in? Yeah. starts to get difficult. And then, you know, on top of that, like once, even if you get passed, like, can I even get my checking? Can I get the deal flow?

Then it's like, okay, well, who's setting the price here? Are you going to be able to get it? Because whatever VCs tell you, like the name of the game in VC is entry price, exit price. If you overpay for your investments, then you're not going to make any money. You know, if you invest at $50 million pre for a pre-product or

Then it's like, okay, well, who's setting the price here? Are you going to be able to get it? Because whatever VCs tell you, like the name of the game in VC is entry price, exit price. If you overpay for your investments, then you're not going to make any money. You know, if you invest at $50 million pre for a pre-product or

you know, pre-revenue business, it's a really big hurdle for you to make a reasonable return, obviously, because you overpaid for it. And so that's sort of the third thing that comes into it. It's like, do you have the pricing power? So can you get the deal flow? Do you have the pricing power to get a reasonable valuation? And can you even put your money in?

you know, pre-revenue business, it's a really big hurdle for you to make a reasonable return, obviously, because you overpaid for it. And so that's sort of the third thing that comes into it. It's like, do you have the pricing power? So can you get the deal flow? Do you have the pricing power to get a reasonable valuation? And can you even put your money in?

And that's alongside like, okay, well, you probably have a full-time job. How often are you doing these investments? Are you learning fast enough to stop doing stupid shit and start doing good investments? And that's really the reason why, along with this spreading of risk, why people invest in venture funds as opposed to just being individual angel investors.

And that's alongside like, okay, well, you probably have a full-time job. How often are you doing these investments? Are you learning fast enough to stop doing stupid shit and start doing good investments? And that's really the reason why, along with this spreading of risk, why people invest in venture funds as opposed to just being individual angel investors.