Collaborative Fund's bold investment of $5 million into a single startup in 2015 exemplifies the high-risk, high-reward nature of venture capital. The article explores the complexities of portfolio construction, emphasizing the balance between concentration and diversification while highlighting the significance of conviction in investment decisions. Ultimately, it argues that effective venture capital requires both strategic thinking and an understanding of the unpredictable landscape of startup success.
venture-capital ✓
portfolio-construction ✓
risk-reward ✓
investment-strategy ✓
+ conviction