Risk Tolerance

Risk Tolerance is the amount of uncertainty, potential loss, and volatility an investor, founder, or organization is willing to accept in pursuit of expected returns or strategic outcomes. In venture capital decisions, Risk Tolerance influences portfolio construction, follow-on reserves, and appetite for concentrated bets, and aligning Risk Tolerance among stakeholders can reduce friction in financing and exit discussions.

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Ryan Roberts Startup Lawyer
Ryan Roberts is a startup lawyer with more than two decades of experience advising on venture financings and M&A transactions totaling more than $1 billion. He is the author of the Amazon bestselling startup law book Acceleration.