Gurski: Early VCs must prioritize huge markets over incremental risk reduction
Dmitry Gurski · Dmitry Gurski: From Potato Farm to $200M in Revenue: The Never-Before-Told Story of Flo Health|E1205 · 20VC with Harry Stebbings · Sep 23, 2024 · at 59:31
Dmitry Gurski is the co-founder and CEO of Flo Health. He shares his framework for how early-stage venture capital investors should evaluate failure probabilities versus market potential.
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“The main job of early stage investor is to distinguish Cases with 100% of failure with cases 99% of failure and cases with small potential outcome and big potential outcome. And you should find cases when failure is not 100% guaranteed and the potential outcome is big. And it means that for you is the most significant is she understands that the team is not Stupid. They know what they do, and by that you would reduce your chances of failure from 99% to 95%, but then market should be big because it's impossible to get a disproportional outcome from small market.”
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