Power law and implications for portfolio management

Unlike the stock market, where a Gaussian distribution with fat tails more or less describes the return outcomes, the distribution of returns in the venture world is subject to exponential distribution (The Power Law). Namely, less than 10% of capital drives typically 50%+ of fund returns and more than 90%

6 months ago

  • 2 min read
Power Law vs Bell Curve in Investing

In the world of investment, knowing your distribution is hyper-critical. It sounds mathematical, but understanding the dynamics of "Power Law" vs "Bell Curve" is important for investors navigating between the public and private capital markets. Investing in public assets: Bell Curve dominance 🔔 In public markets, investment

8 months ago

  • 6 min read
Framework for operating tech businesses in a high-interest rate policy

Technology startups have been on the rise over the last decade and for a good reason: from changing the distribution model of software to the cloud to the rise of machine learning and AI also rhymes with the introduction of new technologies such as blockchain. However, scaling a technology startup

2 years ago

How To Calculate Churn And Churn Rate For SaaS Companies: A Complete Guide

If there's one business metric that rules them all - it's churn. No wonder, many executives and VCs call it "The Silent Killer". And despite that most of the time everyone in the tech ecosystem (founders, investors, media, etc) are focused on nailing growth

2 years ago

  • 5 min read
Startup founder mistakes from 0 to 1

Zero to One (or 0 to 1) - is going from nothing to something, for SaaS companies this usually means going from pre-revenue to $1m in annual recurring revenue.  Given the zero base - it's the biggest leap that a company will have to achieve on its path

2 years ago

SaaS Magic Number: measuring scaling efficiency

Tons of metrics can be calculated for any SaaS business. In order to determine how your start-up is performing in a business environment, it's essential to calculate the SaaS Magic Number and various other sales efficiency metrics. Although the metric is overlooked in the SaaS startup community, it’

5 years ago