Fred Wilson: The Fallacy Of Bimodal Returns: startup returns are not bimodal. They exhibit more of a power law curve. There will certainly be one or two venture deals every year that generate 100x or more. And there will certainly be quite a few total busts. But there are a lot of outcomes in the middle of those two.
Binary is the term used by
Ron Conway, the guy in
Silicon Valley who invests like he had perennial diarrhea. I read him using the term in a TechCrunch blog post a few weeks back. Binary works for him. It works because he has a track record over almost two decades, or at least a decade and a half, of not having missed out on any good deal in the Valley. He has been in all the top companies. He has also managed to get into FourSquare. And he keeps spreading the love far and wide. This past year I think he put 60% of his money into
New York companies.
