Venky Ganesan treats each seed investment as an option and sizes up only when revenue and quantifiable metrics show a company is an outlier. Listen
Ganesan said a fund needs enough 'at bats' so that it is likely to hold an outlier, and should then concentrate capital only on companies already proven by quantitative evidence. He presented portfolio composition and position sizing as the way to manage cycle risk without trying to time the market.
“Each seed investment is an option bet. You're buying an option to see if it's an outlier... then you only position size up on the things that are already proven?”
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