Question of the week #20

ImgresOnce you begin investing in companies you must continue to invest to grow your portfolio.  I have actually been thinking alot about the question this week so it is a perfect time to answer it.

How many active investments do you
like to have at a given moment in time? Because you like to take an
active role, is there a limit to how many you can be active in at once?

I do have a few investments that I am not that active in for many reasons.  Notice the word not which means I am still active at some level.  Some don't need much help, others go in waves, others have moved into a different realm with other rounds of financing and some are not in my backyard. 

I do not have a number in my head about how many investments I like to do in a year.  I have the flexibility to do a deal when I just think it makes sense.  I am definitely hitting a point where I am probably over-extended but I am also about to see many deals move to the next level of capital.  My guess is that I will either take a board seat or be more of a consigliere to the entrepreneur instead of being involved as I have been.

There are times that I think I should just hang back for awhile but that never seems to happen.  There are times when I know that I have hit the wall but it all seems to work itself out.  So is there a limit? Probably but I have not figured out exactly what that limit is.  Just when I think I hit a limit, I seem to pull something out of a hat.  At one point the hat might be empty but it hasn't happen yet although I might just not know what an empty hat looks like.