You Can’t Pick The Winners Without Investing in The Losers

Alex Osterwalder

February 5, 2018

#

min read

topics

Innovation Portfolio

To pick the home runs you need to invest in a lot of losers and mediocre projects. The data from early stage venture capital clearly illustrates this. If executives in companies knew the data, they would probably not expect a majority of projects to become a winners.

Early stage venture capital investors know that it's impossible to pick the big winners without investing in losers early on. The data shows that 6 out of 10 early stage investments will fail out right. 1 out of 4 might make some money, and only 4 out of 100 will turn out to be home runs.

For executives that data means they need to invest in at least 25 projects to create one substantial growth engine and do so every ear. They need to get a lot more comfortable with failure, if they hope to innovate and grow!

We’ve written a couple of posts in the Related reads below about the challenge of picking winners, and the mindset shift that has to happen in large companies. Senior executives need to think more like VCs when investing in new business ideas.

No items found.

related reads

About the speakers

Alex Osterwalder

Entrepreneur, speaker and business theorist

Dr. Alexander (Alex) Osterwalder is one of the world’s most influential innovation experts, a leading author, entrepreneur and in-demand speaker whose work has changed the way established companies do business and how new ventures get started.

by

Alex Osterwalder

February 5, 2018

1
2
3

related reads

Explore more innovation insights in our knowledge library

“Failure” saves your company money & encourages the pursuit of bold ideas

Why Fortune 500s don’t invest in growth

Let's talk

Whether you’re looking for more information or you’re ready to start a project, we’re ready to help.

Thanks for your interest in our solutions. We will be in touch with you soon.

February 5, 2018

#

min read

topics

Innovation Portfolio

To pick the home runs you need to invest in a lot of losers and mediocre projects. The data from early stage venture capital clearly illustrates this. If executives in companies knew the data, they would probably not expect a majority of projects to become a winners.

Early stage venture capital investors know that it's impossible to pick the big winners without investing in losers early on. The data shows that 6 out of 10 early stage investments will fail out right. 1 out of 4 might make some money, and only 4 out of 100 will turn out to be home runs.

For executives that data means they need to invest in at least 25 projects to create one substantial growth engine and do so every ear. They need to get a lot more comfortable with failure, if they hope to innovate and grow!

We’ve written a couple of posts in the Related reads below about the challenge of picking winners, and the mindset shift that has to happen in large companies. Senior executives need to think more like VCs when investing in new business ideas.

related reads

Insights

“Failure” saves your company money & encourages the pursuit of bold ideas

Insights

Why Fortune 500s don’t invest in growth

You can’t pick the winners without investing in the losers

To pick the home runs you need to invest in a lot of losers and mediocre projects. The data from early stage venture capital clearly illustrates this. If executives in companies knew the data, they would probably not expect a majority of projects to become a winners.

Thanks for your interest in

You can’t pick the winners without investing in the losers

You can’t pick the winners without investing in the losers

ONLINE COURSe

Let's talk

Whether you’re looking for more information or you’re ready to start a project, we’re ready to help.

Thanks for your interest in our solutions. We will be in touch with you soon.