Why Early Bets Are Less Risky

- I personally find it to be a lot less noisy. You know, when companies start to get a lot of traction or they start to surround themselves with, you know, big names or other firms, it's natural to get this sense of foam hour, like the sense that you're missing out on something and you treat that as a real signal of it.

Oh, if so and so is investing, I should be there or if this many customers are signing up, I should be backing it. But I found that when you go earlier and there's less, meaning like there's less of a product, less customers, less revenue, you're left with what is true about the people?

You're left with, are they an inspiring leader? Are they a good communicator? Can they build product? Can they sell? Are they putting in the time and energy and effort? And because I'm willing to underwrite at that level, I can also price it much lower, right? I can come in and say,