image1 image2 image3

PRODUCT.|PHILOSOPHY.|LIFE.

Get new posts in your email

Take a leap

VCs invest in ten or more companies from a single fund because their investments are of a high-risk high-return nature. When the probability of each investment returning profits is less than ten percent, they have got to make a larger number of investments in order to even the odds.

This is the nature of their investments because it isn't possible to have clear cash-flows and profits chalked out before they invest. If it were, the investments would no longer yield high returns as there would be a lot more capital available for such companies, thus driving up the price.

In our own lives, we fail to adopt this VC mindset.

We refuse to take on additional responsibility at work unless we are guaranteed that it will pay off in the form of a bonus or a promotion. We refuse to learn a new skill unless we are guaranteed that it will help us grow to the next level. We refuse to change our habits unless we have evidence that it will drive the change we are looking for.

If it were possible to have such guarantees, then everybody would do these things and as a consequence, there would no longer be that guarantee.

The only way to have positive returns and growth is to take many chances and to bet on ideas and behaviours that have a potential to pay off. Many of them will not. But some will. Enough to make up for the time we invest in the ones that don't.

Stop saying no simply because the outcome is uncertain. Take a leap.

Share this:

CONVERSATION