Andrew Wilkinson, Tiny // From Barista to Billionaire, Building The Internet's Berkshire Hathaway & Munger's Mental Models
Creator Lab - interviews with entrepreneurs and startup founders
The Pros and Cons of Investing in Venture Capital
When considering acquisitions, the focus is on structuring deals to minimize losses in case of market downturns. This is different from venture capital where the success rate is low, as most deals may not yield profits. Acquisitions provide more stability as existing businesses have visible cash flow and assets, reducing the risk of total loss. While losses are expected occasionally, these are mitigated through careful structuring. Despite a few setbacks, the speaker's investment strategy aims for success in 90% of circumstances. Learning from past failures, especially a case of being defrauded in a small acquisition, has led to improvements in future investment decisions.
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