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Writing the first draft of financial history with Byrne Hobart
Complex Systems with Patrick McKenzie (patio11)
Success in Venture Capital: A Game of Luck and Measurement
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Describing the world through probability values presents a surprisingly underutilized approach. In finance, where the interpretation of the field can vary significantly, the measurement of success, particularly in venture capital, poses a unique challenge. Unlike the rigorous methodologies seen in hedge funds, venture capital often lacks the same level of systematic analysis. Notably, the evaluation of venture investor skill remains complex and perhaps unsolvable due to the inherent nature of power law dynamics in investing. This results in long delays between investments and returns, a small sample of genuine successes, and a tendency to attribute successful outcomes to luck, complicating the analysis and understanding of investor performance.
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Discover
highlights
Listen to the best highlights from the podcasts you love and dive into the full episode