As expected, lots of investments lose money. Venture capital is a risky business. Notice that the curves are U-shaped. It isn’t surprising that the bad funds lose money a lot, or that the good funds lose money less often than the bad funds. What is interesting and perhaps surprising is that the great funds lose money more often than good funds do. The best VCs funds truly do exemplify the Babe Ruth effect: they swing hard, and either hit big or miss big. You can’t have grand slams without a lot of strikeouts.

http://cdixon.org/2015/06/07/the-babe-ruth-effect-in-venture-capital/?utm_medium=email&utm_source=cb_daily&utm_campaign=email