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%

4 months ago

If VC would've been a sport - it would've been Baseball

It's a pretty popular fact that greatest baseball players hit the ball every 1/3. The green line below show this as fairly consistent across the top-50 hitters historically (the 50th having 2839 hits, so it's quite reprentfull). While the greatest hitters do an average 15-20%

5 years ago

Long live the Content - long live the King

At the foundation of any organization, there are a few elements that repeat over and over regardless of the industry. * Team or who does what? * Process or how they do it? * Content or What they do? * Vision or why do they do it? (other than to make a buck) With

7 years ago

Thoughts on VC's DNA

Yesterday, there was a good post from Steve on Hackermoon on what are good traits of a VC. Here are my few lines on the topic. Beyond qualities of being an insightful and knowledgeable folks whom its good to work with, here is a short of list of qualities which

7 years ago

Early-stage startups investment framework

After having been pitched thousands early stage companies makes sense to share the investment framework, which we used to streamline investment analysis and be more diligent and thoughtful about our investment process. Early stage startups, especially now in IT operate when a cost to create a company is almost reduced

7 years ago

What does a limited partner look in a venture capital fund manager?

The venture capital's business model is to invest into and sell companies, making several times in the process. To fund an investment, venture funds rely on its limited partners for their capital. There are many types of organizations and individuals who are pertained to fund risks imposed by

7 years ago