Archive: reward


Startup Insider: Demystifying Funding Risk

By Early Investing on February 8, 2021

The savviest startup investors know that the difference between being mildly successful and being wildly successful comes down to understanding risk. Because when you’re investing in companies with a limited operating history, some risks are worth taking. Others are not. Not all risks are created equal either. Funding risk is one of the most commonly discussed risks in startup investing. But it’s also one of the most misunderstood. That’s why Andy Gordon and Vin Narayanan devoted…

Three Factors that Signal Upside Potential

By Andy Gordon on January 21, 2021

Sometimes it’s good to go back to basics. And one of the basics that every investor has to consider before making a startup investment is upside — does this startup have the right pieces put together to provide significant upside on my investment? …

Bitcoin’s Growth is Just Beginning

By Adam Sharp on October 23, 2020

Well, that happened faster than expected. Last Friday I wrote a piece for Early Investing about how bitcoin was in a very sweet spot. I covered the bullish institutional case, along with other factors leading to a very positive environment.

The Best Startups ‘Cheat’

By Andy Gordon on September 2, 2020

I love cheaters. In fact, I only invest in startups that “cheat.” I don’t mean companies that are running scams or lying about their services. No, I mean the startups that redefine — that cheat — the game of risk and reward. Companies that can lower…

The Truth About Risk and Reward

By Andy Gordon on August 26, 2020

Whether you realize it or not, chances are you believe in the risk-reward trade-off. In its most basic form, it means the lower the risk, the lower the potential returns. And the higher the risk, the higher the potential returns. The basic idea sounds perfectly logical.

The Number One Rule of Investing

By John Fanning on August 19, 2020

Note: We’re pleased to welcome John Fanning to the Early Investing family. John was the founding chairman and CEO of napster. He has an impressive track record as both a founder and startup investor. And he will be sharing his thoughts — and occasional startup recommendations — on…

3 Questions You Should Ask Before You Invest

By Andy Gordon on August 12, 2020

The best startups make the world faster, safer, cheaper, more convenient, less dirty and more fun. Their innovative products meet old needs in new ways — or address new needs in any way they can.  Of course, a startup needs a lot more than just a…
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A Simple Way to Assess Startup Risk

By Andy Gordon on February 21, 2018

The Berkus Method, a four-factor valuation formula, gives you a nice framework to assess investment opportunities in terms of current risk and chances of future success.