Tip - 50 investments in Startups, you have a 96.9% chance of at least doubling your money

50 investments in Startups, you have a 96.9% chance of at least doubling your money

MY TAKE AWAYS
We set out to answer the question of: “How many investments should an angel/seed investor make to be adequately diversified?” Assuming our probabilities of outcomes hold true:

At 20 investments, you have a 98.7% chance of at least getting your money back (> 1x).  This is probably the minimum number of deals I would look to have in an angel portfolio.
At 50 investments, you have a 96.9% chance of at least doubling your money (> 2x).
At 500 investments, you have a 96.2% chance of at least tripling your money (> 3x). As you diversify through volume investing, the closer you get to being assured of your.....

By: Alex of Lion Fund