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Podcast: Investor Connect Podcast
Episode: Startup Funding Espresso – Matching Risk To Reward
Description: Matching Risk To Reward Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In choosing an investment, the investor matches risk to reward. A public stock may go down but most likely will not go bankrupt. A startup is much more likely to go under. Since the risk is low in a publicly traded company, the reward may be low. Since the risk in a startup is high, the reward must be high. For later-stage startups the risk of going bankrupt is lower than for earlier-stage companies. Therefore, the...