Allocating capital across bets
Each bet has a sponsor and a spreadsheet, and the spreadsheets do not share assumptions.
What this decision usually turns on
- Expected return and its confidence
- Time horizon
- Strategic necessity
- Downside if it fails
- Opportunity cost
These are a starting point. The first thing Phronexia does is help you decide which of them actually matter here, and what weight each one carries.
Who should be in it
- Founders
- Finance lead
- Bet sponsors
Related decisions
Evaluating an investment
Assess an investment against explicit criteria and record the assumptions the case depends on.
Entering a new market
Structure a market-entry decision, with entry mode, cost and the conditions for reversing it made explicit.