Wild guesses as someone that knows very little about this:
I wonder if it’s because people have sublinear returns on wealth, so their second company would be more mission driven and less optimized for making money. Also, there might be some selection bias in who needs to raise money vs being self funded.
But if I had to bet I would say that it’s mostly noise, and there’s not enough data to have a strong prior.
Wild guesses as someone that knows very little about this:
I wonder if it’s because people have sublinear returns on wealth, so their second company would be more mission driven and less optimized for making money. Also, there might be some selection bias in who needs to raise money vs being self funded.
But if I had to bet I would say that it’s mostly noise, and there’s not enough data to have a strong prior.