Sigma Labs Inc (SASI)

[RiskReward1]

I invest in VC as well, which of course is a speculative area of investment, as is investing in any small, emerging company. It's misleading to say that your odds are better at a roulette wheel. Unless you mean to say that you think odds in a single spin of the roulette wheel could be better than an investment in Sigma or in any investment that is clearly speculative in nature.


I can't say that I feel strongly that Sigma's odds of success are better than 50/50. But I can say that I think Sigma has a real shot and that there are billions of dollars invested in companies on an on-going basis where the investors are doing the best DD they can and are not necessarily of the definitive opinion that odds of success are better than 50%.

However, if part of the calculation is that, in the event of success the return may well be several times the investment, then for some investors who have proper diversification, it can be a successful approach. This is the essence of the risk/reward approach to VC -- spreading out of risk across multiple investments with understanding that the likelihood is that some companies will succeed and others will fail, and that the successes will potentially outweigh the failures -- either in number and/ or by degree.

The same thing can't be said with any credibility about a trip to the casino.