Power laws with pooling: a more realistic model of venture returns

Steve Crossan
Apr 17, 2018 · 5 min read
Outcomes drawn from pool
Original Post
Correlation Ventures real-world data

Performance

Portfolios drawn from a pool of 80,000 fundable companies
Portfolios drawn independently from a powerlaw

Mean Performance

Portfolios drawn from a pool of 80,000
Portfolios drawn independently from distribution
Median outcomes by portfolio size with investments drawn from a pool of 80,000

Conclusions


Steve Crossan

Written by

Research, investing & advising inc in AI & Deep Tech. Before: Product @ DeepMind. Founded Google Cultural Institute; Product @ Gmail, Maps, Search. Speak2Tweet.

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