Startup Funding Espresso The Babe Ruth Effect
The Babe Ruth Effect Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. The Babe Ruth effect mental model comes from Babe Ruth who once said: \u201cI swing big, with everything I\u2019ve got. I hit big or I miss big.\u201d The mental model postulates that it\u2019s better to take big risks than to avoid failure. Eventually, the big risks will pay off and will outweigh the failures. In investing, venture capitalists follow the Babe Ruth effect by betting big and then ignoring the ones that didn\u2019t make it. To pursue the Babe Ruth effect as an investor consider the following: Find sources of quality deal flow. There\u2019s no shortage of deals, but there is a finite number of quality deals. Setup a process for diligence and deal negotiations. It\u2019s a process that you will repeat many times so set it up for efficiency. Startup success rates tell us only one in ten will be a home run.\xa0 Prepare yourself mentally to lose on seven to nine deals out of every ten. Invest with others to share the deal flow and diligence. It takes substantial work to fund and then support a deal so don\u2019t go it alone.\xa0 The Babe Ruth effect tells you to focus on maximizing the upside and not just mitigating the downside. \xa0 Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.Let\u2019s go startup something today. _______________________________________________________ For more episodes from Investor Connect, please visit the site at: \xa0 Check out our other podcasts here: \xa0 For Investors check out: \xa0 For Startups check out: \xa0 For eGuides check out: \xa0 For upcoming Events, check out \xa0\xa0 For Feedback please contact info@tencapital.group\xa0\xa0\xa0 Please , share, and leave a review. Music courtesy of .