With the principle of the VC industry, guide the life of this big gambling * * *

Many people think that VC is a high-risk business, but in fact, VCs is a very lucrative industry, otherwise, how can there be, continuation, and prosperity? There must be a mystery, it must contain the basic principles, these, you know? The truth of this mystery, in fact, can also be used in any cause, or even guide your life.

I see a lot of people, often in the business and stability of the uncertainty between the work, in fact, if you understand the above mentioned the truth, you can easily choose more.

Life is actually a gamble, even if you think you have no bet, you are still gambling. Because, you make a choice every day, some people choose to actively explore new opportunities, some people choose to go the way of repeating every day. Those who think they have no bets are the latter. What kind of choice is good? The person who chooses the latter is in fact betting on the rules rather than actively exploring. However, you can use your butt to know that people are people, is the spirit of exploration. In particular, if you think that you are smart, competent, analytical, giving up active exploration is actually very, very wrong.

Since it is gambling, there are strategic and tactical issues. Strategic choice is very important, tactical and skillful, unable to resist the strategic error. As I said at the outset, the mystery of the success of VCs is in fact a strategic level.

The basic principle of VCs is actually a formula: R = (r + 1) * q-1, where Q represents the probability of a career success, R is the return on business success, R is the average rate of return, note, here, return = (income-input)/input.

To make it easy to understand, give a few examples,
A. r=28, q = 0.1, then r= 1.9
B. r=5, q = 0.9, then r= 4.4
C. r=0.1, q = 0.9999, then r= 0.09989.
Where c is the equivalent of depositing your money in a bank. What VCs do is to divide the money they manage into several parts, and then invest them in the projects with the highest R values. Let's say that VCs projects are category A, and if he throws 100 projects, 10 of which will be 28 times times the rate of return, and the remaining 90 are finished, his total return is 1.9, 20 times times higher than the bank's deposit income. Here, it is important to note that the results of the VCS need to accumulate for quite a long time before they can be revealed. A Class A project, that is only 10% successful grasp, which in many people's view, is very risky, is not willing to do things, but because of the high R value, the VC through the dispersion and average, and finally obtained a far higher than the bank deposit returns.

How to use this formula to guide life? You would say that VCs can separate his money, I can not separate themselves, how to do? The answer is, tick. Put your life into a phase, each stage, choose the highest R value of the project to do, on average, your life harvest must be the biggest.

Ok, since there is a guide formula, the remaining question is how to get the opportunity and how to seize the opportunity. There are many ways to get opportunities, including, LinkedIn, tenderness, Twitter, blogs, and so on, and these things, like your prepared hooks, paved nets, may not give you a chance to bring you (don't forget, let people find you through these, otherwise, the hook is useless). Seize the opportunity to use your eye, smell, to analyze each opportunity of R and Q. Of course, there is one more variable to note, which is the payback period of the project. The shorter the payback period, the better, so that you can try more in your life.

With the principle of the VC industry, guide the life of this big gambling * * *