What type of return can I expect?

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Given that the concept and challenge about startup investing is in finding and ultimately funding startups that are about to/or will eventually take off, answering this question is extremely difficult. Some of your investments will be yield nothing while others can potentially provide returns in excess of 1000%.  

The standard rule of thumb is the “1/3 rule” in the venture world is– 1/3 of companies have a positive returns, 1/3 of companies break even, and 1/3 of companies go out of business.  In a balanced portfolio of 10 or more startup investments, it may be the case that one or two companies will generate returns that create positive ROI for the whole portfolio.  

acr30 Expert Answered on September 7, 2015.
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