Think of portifolio risk rather than risk of one exact investment. At the end of the day performance of the whole portfolio is your key interest. Create a strategy for the fund (incl. returns & risks expectations) and follow it while evaluating the opportunities.

Determining the right level of risk in a VC deal involves diving deep into the management team's journey. Look beyond numbers—analyze their strategic pivots, crisis responses, and vision alignment. This qualitative assessment, combined with market dynamics and product traction, can reveal how well they can navigate future challenges and seize opportunities, guiding your investment decision.

When evaluating a deal, we prioritize a balanced risk approach. First, we assess the founding team’s track record and ability to execute—this is non-negotiable. Next, we look at the market opportunity: Is it scalable, and how quickly can this startup capture market share? Additionally, we leverage data analytics to understand trends and competitive landscapes. Diversifying our portfolio is key, so we balance higher-risk, high-reward deals with stable, revenue-generating ventures We invest in companies that are future-proof, meaning they can adapt to market shifts. Our strategy is aggressive but calculated; we take smart risks where the upside outweighs potential losses.

1. Know the people and team behind - their attitudes, achievements, and goals. This gives you the ability to understand (real true engines or just air balloons without hands-on) 2. A deal should certainly either scale and match a true and real demand in the market rather then being a future space shuttle OR be a really revolutionary story that will 99.99% become relevant and important. 3. I guess, if you as a VC a convinced, the first 2 points are good enough, and apart from the numbers and underlying documentation, you have a positive transperent chemistry and exchange with the investment target (team) = trust, then it is gonna highly likely work perfectly out. And don't forget to clearly communicate your expectation when you start!