Why We Invest in Volume
A concentrated 30-position seed fund and a 150-position one, run against the identical simulated outcomes, land in very different places. The 150-position portfolio clears 5x in 58% of simulations. The 30-position one clears it in 21%. Nothing about the picks changed. Only the number of shots did.
That’s the argument behind our new interactive tool: drag a slider from 30 to 1,000 positions and watch a Monte Carlo simulation, built on Correlation Ventures’ 21,000-financing dataset and Horsley Bridge’s outlier research, show you why volume beats conviction in a power law market. Free, no login, and you can edit every assumption we made if you don’t buy them.
Full piece, math, and caveats here: https://www.teamignite.vc/blog/why-we-invest-in-a-lot-of-companies