I like the math but don't love the analogy. In the subprime mortgage market, you're managing failure (how few of our lenders will default) whereas in YC/VC, th

I like the math but don't love the analogy. In the subprime mortgage market, you're managing failure (how few of our lenders will default) whereas in YC/VC, they're managing for a few big successes. The downside is uncapped for subprime, the upside is uncapped for YC/VC.