Reviewing some VC related guff, I came across this graph showing the likelihood of an angel investment cash-on-cash returns ... the curves clearly show that a portfolio of 100 startups is almost certain to keep dollar value (but perhaps not true after inflation) and has ~80% chance of doubling your money (dropping to 40% if only 10 punts). This raises an interesting question
- for Australian startup founders, before embarking on their dash for cash, should they put a portion of savings into a self-managed super fund with objective of cross-holdings in fellow startups? - the problem being in that you are limited to 4 members (most likely the initial founders) how to structure it for multiple participants as well as potentially outsiders wanting exposure - if such a SMSF can operate transparently and autonomously (ie low fees save for basic auditing/tax returns) how can the 100 startup firms be selected for the fund of funds? (assuming founders have wisdom of crowds and can pick peers they think have decent business prospects) - given the tax situation, what would be the best balance between investing in own company (with consequential chances of catastrophic failure) vs socialsing the losses ... ie should one allocate 5/10/20% of undiluted equity as a mutual self-insurance scheme to make sure that the all-in approach is not going to leave one destitute? Thought to ponder [image: portfolio.jpg] -- -- You received this message because you are subscribed to the Silicon Beach Australia mailing list. Vist http://siliconbeachaustralia.org for more Forum rules 1) No lurkers! It is expected that you introduce yourself. 2) No jobs postings. You can use http://siliconbeachaustralia.org/jobs To post to this group, send email to silicon-beach-australia@googlegroups.com To unsubscribe from this group, send email to silicon-beach-australia+unsubscr...@googlegroups.com For more options, visit this group at http://groups.google.com/group/silicon-beach-australia?hl=en?hl=en --- You received this message because you are subscribed to the Google Groups "Silicon Beach Australia" group. To unsubscribe from this group and stop receiving emails from it, send an email to silicon-beach-australia+unsubscr...@googlegroups.com. For more options, visit https://groups.google.com/d/optout.
