Portfolio Management, Venture Horizons

Is managing Venture Portfolios by Horizon’s a thing?

Ventures mature at varied rates, each reaching traction, and monetization on differing time tables. Publicly traded companies sometimes attempt to reduce risk and pipeline growth by strategically managing their portfolio’s by “horizons.”
An example of balancing investing* by horizon:
33% in Horizon 3 – 3+ Years Out
33% in Horizon 2 – 2 Years Out
33% in Horizon 1 – 1 Year Out
The thinking behind this strategy is that: balanced investment in R&D horizons (near term, mid term, long term) will mitigate risks and result in predictable revenue gains.
Unfortunately, traction is discovered and not readily predictable, and other companies’ traction (experienced as disruption) is also not predictable.
Since, new growth cannot be predictably planned, it is often better to invest in products and service that are discovering increasing traction! (i.e. Invest in Traction). Dimension #2 – Portfolio Management, Venture Horizons. ©2018 iiSM.ORG, All Rights Reserved.

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