Target ownership makes no sense

I never target percentage ownership. It makes no sense.

Yes, you have to own a certain percentage of a company to return a fund given a certain fund size and target valuation.

But...

If you then doubled your fund size you wouldn't invest twice as much in each company, you'd just have twice the number of investments that would each have the same likelihood of reaching that target valuation.

Or with the same fund size, if you had twice the number of investments with half the ownership you'd on average have twice as many investments that hit that target valuation (and less variance in your outcomes).

The only time target ownership makes sense is if you want a board seat and to be able to maintain that board seat even if you get diluted.

You always have a distribution of outcomes spread across multiple investments. You need that distribution of outcomes to be as good as possible. Target ownership is irrelevant.

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