Fri, Mar 29, 2013
Every (sane) investor applies some type of portfolio theory to their investments. In its most simple form that means that she simply spreads out her risk across multiple investments. As an entrepreneur you don’t have that chance — for you it’s all or nothing. Or is it?
Three friends of mine decided to each build a startup and give the other two a stake in their respective companies. Portfolio theory. Turned out — it worked for them.
Granted this is hard to pull off. You need to have deep trust. And yet: Worth thinking about.