Fund managers often make the mistake of not having appropriate reserves for successful investments, leading to missed profit opportunities. To address this, it is crucial to allocate between 40-50% of the total fund size for reserves, allowing for full investments in promising ventures. By reserving a portion of the fund for winners and strategically deploying the remaining capital, such as investing in cloud computing credits and infrastructure, a well-structured investment approach can potentially generate substantial profits. The key is to provide free compute credits to startups in exchange for upfront payment and performance benchmarks. By enabling startups to access compute resources and focusing on measuring performance metrics specific to each business model, the investment fund could catalyze innovation and potentially achieve significant returns. With a well-planned allocation strategy and a focused team of 30-40 individuals, this business model has the potential to generate trillions of dollars in returns, showcasing the importance of strategic investments and resource allocation in maximizing profitability.

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