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What is an accelerator or a funding group for whom the portfolio is not following that power law? For example one where the top 20 companies each comprise say a
by fanzhang 8y ago
What is an accelerator or a funding group for whom the portfolio is not following that power law? For example one where the top 20 companies each comprise say appx 2% of the portfolio?
- anujabro 8y agoOne that all have similar successes (e.g. all fail) Odds are most early stage venture portfolios have a power law distribution, but of different magnitude. Later stage you go, the more normal the distribution will look
- maehwasu 8y agoGrowth stage private equity buying out companies for multiples of EBITDA. Whenever you're investing in early-stage companies with low marginal costs, that deal primarily in bits, not atoms, you're likely to end up with power law outcome distributions.