What’s bigger than a unicorn?

What’s bigger than a unicorn?
Over half of all VC investments lose money. 

Let that sink in. 

HALF of the companies that the smartest and most experienced investors in the world vet, interview, believe in, and then cut checks for...are complete failures. 

And this gaudy statistic isn’t dragged down by a few complete losers at the bottom of the bell-curve. No - even the Sequoias and Bessemers of the world lose half the time. 

So if all VCs generally “win some and lose some,” what separates the best VCs from the average?

The size of their wins. 

Great VCs don’t just pick unicorns. They pick GIANT-50X unicorns: Facebook,
Twitter, LinkedIn, Paypal, Uber, etc. 

A whopping 60% of VC gains come from 6% of their investments. The pareto principle is strong in the capital investment game. 

So what does that mean for you as an investor?

Market Cap matters. A lot. 

It also means:

Don’t invest in niche.

Don’t invest in local. 

Instead, think bigger than unicorns. 

Invest in the potential disruptors of entire Trillion Dollar Industries: Transportation, Food, Education, Fashion, Banking, Social Media, etc. 

In short: since you’re guaranteed to lose half the time investing in startups - your winners better be enormous. 

Stay Strong, 
Tai Lopez
President, Schweitzer Alexander

P.S. If you’d like to talk more about investing with Schweitzer Alexander:
Go here to schedule a call. 



 
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