Raise Millions by Hustle Fund VC Page 16 The math of venture capital can be complicated. All you need to really know is that VCs invest in dozens of companies expecting the majority of them to fail. The 1-2 startups that give investors a 100x return will pull up the value of the entire portfolio. For example, imagine a VC firm invested $50k into 100 early-stage startups for a total of $5M. Ninety-nine of these startups failed. But the one company that succeeded just happened to be Uber, a company that’s worth over $100B today. The firm’s $50k investment in Uber would be worth hundreds of millions of dollars, which more than makes up for the initial $5M investment. This desire to show big returns to their LPs gives the VC industry a bad reputation. Some VCs put extreme pressure on founders to grow at a rapid, unsustainable pace. On the other hand, angel investors aren’t generally looking for a specific ROI. If they love you and your idea, they may invest even if they think they’ll only get a 2x or 3x return. Since angel investors have no outside investors to consider, they can afford to be more patient in your company’s growth. However, to chase big returns, some angels may still pressure you to sell your company if that’ll guarantee them a modest 2x return, or advise you to shut it down entirely. hustlefund.vc / @hustlefundvc