65% of VC investments lose money or break even.
Not "underperform."
Not "disappoint."
They literally hand their investors' money back in smaller piles.
(If they hand ANY back at all...)
And it gets worse:
Only 3-4% of VC-backed companies ever hit that coveted "home run" status (10X+ returns).
Less than 1% become unicorns.
And a microscopic 0.4% return 50X or more.
This is an industry where the "experts" – people whose ENTIRE JOB is picking winners...
Are basically professional coin flippers.
(Except the odds are way worse than 50/50...)
Which makes what I learned this week even crazier.
See, I just interviewed this VC who's completely flipped the risk equation on its head.
He's found a way to get private equity-level CERTAINTY...
With venture capital-level RETURNS.
All built on one simple insight that most investors know, but completely ignore:
See, most VCs invest first... then pray their companies can find customers.
But this guy?
He’s built a distribution channel of over 100 community banks…
Who trust him to bring them game-changing technology.
So when startup founders pitch him their latest "revolutionary" FinTech solution...
Instead of making “educated” gambles like everyone else...
He can put their ideas directly in front of actual decision makers.
Testing demand in real-time.
Getting immediate feedback from the exact people who would use it…
I've been thinking about this a lot lately...
Because it's not just true in VC.
Every massively successful business I’ve studied follows this same pattern:
They don't just have better products… They have BETTER ACCESS to customers.
And that access becomes a “moat” that nobody can copy.
It's why Amazon can launch ANY old product and instantly make millions...
While better products often sit collecting dust because nobody knows they exist.
Distribution is the ultimate cheat code.
I could go deeper into this...
But I think you'll get more value hearing it straight from the source.
And trust me... his insights on early-stage investing, recruiting, and building real value are absolutely worth your time.
Talk soon,
DJ Panfili | Founder https://getdealflow.ai/