VC’s Care About the Upside Case, Not the Mean

The biggest mistake entrepreneurs make when pitching VCs is to argue that their startup is likely to succeed.  Instead, they should argue that there is a small probability their startup could be a billion dollar or greater exit.  There is a big difference between these arguments – the mean of the return distributions might be the same but what VCs care about is right side tail of the distribution.


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Chris Dixon

Chris Dixon is an investor at Andreessen Horowitz. He was previously the Co-Founder/CEO of Hunch, Co-Founder of Founder Collective, and Co-Founder/CEO of SiteAdvisor.

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Filed Under:
Collection: Funding
Category: Pitch Content & Format