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Diversifying and managing risk

Why in startups almost everything depends on the few that work, how to spread, how much to put in and how to use your portfolio split.

6 min read2 chaptersFor investorsIntermediateUpdated Oct 17, 2026

Chapter 1Why diversify

In startups, most investments are lost or stay flat, and a few make up for everything. If you put it all in one, you depend on getting that one right. If you spread, you raise the odds of holding one that works.

€1,000 spread across startups
5
LostFlat×3×12
—Final value
—Projects lost
—Projects that win
Random, illustrative simulation with made-up probabilities. It does not predict real results.

Chapter 2Simple rules

  1. Decide a total you can loseAnd do not exceed it. It is your startup budget.
  2. Spread it across at least 5 to 10 startupsWith a 1 USDC minimum, you can start small.
  3. Mix sectors, countries and stagesUse the board filters.
  4. Do not chase lossesDo not add more to one because it went badly.
  5. Check your portfolio’s “Split by startup”If one weighs more than half, you are concentrated.
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