Question

VCs fund typically have 15 or so investments per fund. Why that number? Why not just 1 or 2 big ones? Or say 50 small ones?

VC funds typically specialize in an industry sector, such as, tech, or health, or education, or manufacturing, or finance. Why the industry specialization. Why not diversify?

VCs prefer a regional approach as well. Why? Why not invest across the continent or even the world for that matter?

VCs prefer to focus on a certain stages or rounds of a company's fundraising, why?

Answer 1

1. It's always easy to have many fundraisers , so that if one or two face crisis , our business won't stop Because of that , and if vc has only 1 or 2 big companies , on incurring of losses , they might back out , which is why it's advisable to have many financials

2.They specialise in this because these are never out of fashion industry , they are like white collar industry , irrespective of anything they will survive till people are there on earth

3.probably Because they are not risk takers , they want to be safe in where they are rather than going everywhere in the world.

4.to ascertain that , the company really is willing to and capable of raising funds rather than just being a bogus company