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![credistick Avatar](https://lunarcrush.com/gi/w:24/cr:twitter::20999409.png) Dan Gray [@credistick](/creator/twitter/credistick) on x 5348 followers
Created: 2025-07-12 14:13:27 UTC

There are two main types of risk in venture capital:

- Idiosyncratic Risk (investment risk)
- Systematic Risk (market risk)

The goal is to embrace idiosyncratic risk (the source of alpha), and limit exposure to systematic risk (a reflection of beta). 

However, systematic risk is seductive.

It distributes accountability, offers a mirage of success in hot markets, and turns investing into a much simpler box-checking excercise. 

This is bad for returns, and bad for innovation.

![](https://pbs.twimg.com/media/GvqQjs7XkAAeStK.jpg)

XXXXX engagements

![Engagements Line Chart](https://lunarcrush.com/gi/w:600/p:tweet::1944037391804547345/c:line.svg)

**Related Topics**
[beta](/topic/beta)
[hedging](/topic/hedging)
[investment](/topic/investment)

[Post Link](https://x.com/credistick/status/1944037391804547345)