Let’s talk about managing our expectations.
The reality is that 90% of startups fail.
The vast majority of startups fail.
Most businesses don't make it past three years.
So, when we're talking about investing in venture, it's a long-term game.
A lot of businesses just aren't going to make it.
It's hard to build a business.
It's hard to disrupt an industry.
It's hard to sustain growth.
There's a lot that goes into it, and it's not easy.
What you see on a pitch deck is the bright and shiny.
It is not the nitty gritty.
It is not the day to day.
The day to day is hard.
The day to day is uncertain.
Anything can happen and any business can go out of business at any point in time.
Now, as a business is in business for longer, it starts to gain its footing. It starts to gain market share, acquire different resources, launch different revenue streams, and have a more sustainable business model.
As it matures, its financial performance is going to be more reliable and stable.
That's sort of the trade-off when it comes to startup investing, because we as angel investors are investing in early stage businesses because we know that getting in early has the opportunity to create the largest return on investment.
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