The returns of startup investments apparently follow closely to the returns of other investment portfolios.
In fact, this follows, the pattern of a million other things.
That is to say, it follows the Pareto principle where 20% of causes lead to 80% of effects.
If you look at it, you will start to see this everywhere.
I bet you do about 80% of your work in 20% of your productive time.
Or that around 80% of most firms profits come from 20% of their customers.
You can bet 80% of my web traffic comes from 20% of posts.
And go ahead and look at the ratings of most well-bought books on Amazon: Nearly 80% are 4 and 5-star ratings. 20% are 1, 2, and
Startup investing follows the Pareto principle: 20 percent of the investments return 80 percent of the fund.
-Rand Fishkin, Lost And Founder
