According to Oleksiy Yermolenko, co-founder and partner of the venture fund Flyer One Ventures, the best international funds have a higher rate of startup write-offs, but investing in riskier startups is a conscious and correct business strategy.
According to Oleksiy Yermolenko, co-founder and partner of the venture fund Flyer One Ventures, the best international funds have a higher rate of startup write-offs, but investing in riskier startups is a conscious and correct business strategy.
«They deliberately invest in riskier startups: either it will be a company with an exit of 10x or more, or it will not take off at all,» he explained in a comment to Forbes.
According to his estimates, this could lead to a situation where one of the startups in the portfolio returns the entire fund. «Another 2-3 — more than 5x. The rest — either bring 2-3x, or are completely written off,» he adds.
At the same time, Yermolenko clarified that the level of write-offs of startups in the portfolio of the venture fund Flyer One Ventures is 10%.
«This is not enough, we need to work on increasing this indicator. The number of companies written off is not critical if the portfolio includes startups that are able to return the fund. If there are none, it is a disaster for the fund’s strategy,» says Oleksiy Yermolenko.
Previously, partner and co-founder of the venture fund Flyer One Ventures, Oleksiy Yermolenko , shared useful tips in an interview with dev.ua on how Ukrainian developers can more effectively raise funds.
