Sep 5, 2018 · 1 min read
I see it best as applied to position size in specific funding round, where
- X-axis is the position size (fund commitment)
- Y-axis is expected N-x gains from investment, as well as risk-level
So that higher risk companies must project higher returns with lower cheques, and companies who are more developed with validated business model & growth insights can deliver just 2–3X, but from higher investment position size, with lower risks.
