The Babe Ruth Effect

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

The Babe Ruth effect mental model comes from Babe Ruth who once said:

“I swing big, with everything I’ve got. I hit big or I miss big.”

The mental model postulates that it’s better to take big risks than to avoid failure.

Eventually, the big risks will pay off and will outweigh the failures.

In investing, venture capitalists follow the Babe Ruth effect by betting big and then ignoring the ones that didn’t make it.

To pursue the Babe Ruth effect as an investor consider the following:

Find sources of quality deal flow.

There’s no shortage of deals, but there is a finite number of quality deals.

Setup a process for diligence and deal negotiations.

It’s a process that you will repeat many times so set it up for efficiency.

Startup success rates tell us only one in ten will be a home run. 

Prepare yourself mentally to lose on seven to nine deals out of every ten.

Invest with others to share the deal flow and diligence.

It takes substantial work to fund and then support a deal so don’t go it alone. 

The Babe Ruth effect tells you to focus on maximizing the upside and not just mitigating the downside.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

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For more episodes from Investor Connect, please visit the site at: http://investorconnect.org 

Check out our other podcasts here: https://investorconnect.org/ 
For Investors check out: https://tencapital.group/investor-landing/ 
For Startups check out: https://tencapital.group/company-landing/ 
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Music courtesy of Bensound.

On this episode of Investor Connect, Hall welcomes Justin Izzo, Lead Data and Trends Analyst at Dropbox DocSend.

Located in San Francisco, California, Dropbox DocSend enables companies to share business-critical documents with ease and get real-time actionable feedback. With DocSend's security and control, startup founders, investors, executives, and business development professionals can build business partnerships that have a lasting impact. Over 30,000 customers of all sizes use DocSend today.

Dropbox is the one place to keep life organized and keep work moving. With more than 700 million registered users across 180 countries, they are on a mission to design a more enlightened way of working. 

Justin is a trusted insight professional with 15 years of research and leadership experience. He is a passionate data-driven researcher who uses deep analysis, persuasive writing, and interdisciplinary skills to find new opportunities, discover unexpected connections and tackle organizational challenges.

Justin conducts research experience, including applied research, for example: Focus groups, participant observation, structured and semi-structured interviews, ethnography, narrative strategies, cultural studies, and content analysis. He attended Duke University and holds a Ph.D. in Literature and a MA in Cultural Anthropology. Justin also attended New York University for his Bachelor of Arts in French Language and Literature.

Justin helps folks how to prepare pitch decks and fundraise, using fundraising surveys and pitch deck data. 

Visit Dropbox DocSend at www.docsend.com and on Twitter at twitter.com/docsend.

Reach out to Justin at justinizzo@dropbox.com, and on LinkedIn at  www.linkedin.com/in/justin-izzo.

_______________________________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org  

Check out our other podcasts here: https://investorconnect.org/ 
For Investors check out: https://tencapital.group/investor-landing/ 
For Startups check out: https://tencapital.group/company-landing/ 
For eGuides check out: https://tencapital.group/education/ 
For upcoming Events, check out https://tencapital.group/events/  

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.