16. 500 Strategy: Lots of Little Bets*
1) make lots of little
bets on early-stage
startups when theyâre
just getting started
3) wait 5-10 years for returns:
-10-20% small exits @1-5X ($5-25M+)
-5-10% larger exits @5-20X ($25-250M+)
-1-2% unicorns @20-50X+ ($250M-1B+)
*See Peter Sims book: âLittle Betsâ
2) over the next five years,
double-down on top 20-30%
~500 coâs @ $100K 1st checks
100+ coâs @ $200-500K
2nd/3rd checks
(hope for a few big exits @
$100M-$1B+)
(assume high failure rate ~50-80%)
17. The Lean Investor
Make lots of little bets:
âą Start with many small âexperimentsâ
âą Filter out failures + small wins
âą Double-down on stuff that looks like itâs working
âą Incubation: $0-100K (âBuild & Validate Productâ)
âą Seed: $100K-$1M (âTest & Grow Marketing Channelsââ)
âą Venture: $1M-$10M (âMaximize Growth & Revenueâ)