Zeev: VCs with high hit rates only need 5 to 8 companies
Oren Zeev · Oren Zeev: How I Raised $1 BILLION in 12 Months | 20VC #888 · 20VC with Harry Stebbings · May 24, 2022 · at 27:19
Oren Zeev is the founder of Zeev Ventures, known for managing highly concentrated portfolios. He outlines his mathematical framework for portfolio construction based on per-deal probability of success.
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“I do think that the number of course, some absolute number, I think that the higher the Probability of success of the underlying, of each individual underlying investment is the less diversification you need. If you believe that every deal that you do has 50% chance of being a big winner, then you don't need more than seven or eight. You know, you probably don't need more than five. If you believe that probability is only 10%, Then, of course, you need a higher number.”
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