zlacker

> If you want bigger returns you will have to accept higher risks.

Only in a perfectly spherical economic market. In an efficient market rewards are a function of risk. Lots of founders talk about their secret sauce: information they knew that other competitors did not. Information is not equally known, and economic rents exist, so there are areas where bigger returns are available for less risk. And there are definitely lots of examples where high risks do not have expected high returns!

>>roboca+(OP)
Information asymmetry is a subject all in its own right, I see it as a modifier, it can obviously improve on the risks but it can also add risks and in some cases taking advantage of it can land you in jail. Typically if there is such information it is communicated to prospective investors as either a trade secret or some other mechanism (for instance: a patent that has been filed) but in the typical start-up setting you are going to have to let other parties know that you have this advantage if you want to get into a position where you can leverage it.

I've come across this a couple of times but in 15 years and 200+ companies not often enough to see it as the big differentiator for success or something that negates the usual risk/reward trade off.