http://blog.brinkofchaos.com/2009/07/thoughts/the-friend-filter/ An Idea Garden from the Fringe Mon, 30 Jan 2012 18:04:10 +0000 hourly 1 http://wordpress.org/?v=3.3.1 http://blog.brinkofchaos.com/2009/07/thoughts/the-friend-filter/comment-page-1/#comment-12 Diversification Mediocrity - The Brink of Chaos Mon, 13 Jul 2009 21:08:25 +0000 http://blog.brinkofchaos.com/?p=102#comment-12 [...] Oddly, there is another aspect of this that applies to VC’s namely it doesn’t pay to be wildly above the mean (sure you make great returns, but with few big bets, if you’re wrong, you’re never going to close a second fund).  This is why investors tend to flock together.  They want to be close to average, but they also want to have their own secret sauce that pushes them just a little ahead of their peers.  If they can be just a little better, they are more likely to secure follow on funding from their LP’s.  Apparently, they too use their friends as a filter. [...] [...] Oddly, there is another aspect of this that applies to VC’s namely it doesn’t pay to be wildly above the mean (sure you make great returns, but with few big bets, if you’re wrong, you’re never going to close a second fund).  This is why investors tend to flock together.  They want to be close to average, but they also want to have their own secret sauce that pushes them just a little ahead of their peers.  If they can be just a little better, they are more likely to secure follow on funding from their LP’s.  Apparently, they too use their friends as a filter. [...]

]]> http://blog.brinkofchaos.com/2009/07/thoughts/the-friend-filter/comment-page-1/#comment-11 Uncle Ken Mon, 13 Jul 2009 17:53:28 +0000 http://blog.brinkofchaos.com/?p=102#comment-11 Hey Matthew - I listen to Pandora every day! When I'm writing, I've got Mozart going... I'm counting on that "Mozart-effect" to pay off. GREAT post. Hey Matthew – I listen to Pandora every day! When I’m writing, I’ve got Mozart going… I’m counting on that “Mozart-effect” to pay off. GREAT post.

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