We believe it's better to invest small amounts in multiple startups. Because the distribution of returns from startups is highly skewed - meaning that the majority of startups fail, and most of the profits come from a few big successes - you are more likely to make a profit by investing in a number of startups in the hopes that the successes of a few outweigh the losses of the rest.
Is it sensible to invest my money in one investment opportunity or is it better to spread it over multiple opportunities?
