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Allocate 10% to a 30x Winner for 3x Fund

How do you create a 3x venture fund? For a smaller fund, in theory there are many ways, but most likely is: 1️⃣ Put 10% of your fund into your very best investment 2️⃣ It does 30x = 3x the whole fund 3️⃣ Rest of fund together does 1x 4️⃣ That’s 4x “gross” together or about 3x net This of course isn’t the only way, but for many more concentrated Seed and Series A funds, this is the “simplest” path Note 30x on 10% of the fund is basically 100x on your first check, after dilution and writing another material check to gets you to 10% of fund So basically have your best investment exit at 100x the price you enter, and get 10%+ of the fund into that investment Get two of these, you have a top 5%+ fund There are many other stories of how folks build 3x+ net funds, but this is the reason so many funds try to put 10%+ into their winners Also note ownership is important here but not directly part of the calculation. Same with price.