Monte Carlo Simulation

topic on 1 show · 2 statements across 2 episodes

20VC

2 statements about Monte Carlo Simulation, every show

20VC Assertion Not checkable as stated
Stebbings: A 23-company VC portfolio captures 84% of diversification benefits
“And I've kind of, you know, run the numbers with a Monte Carlo attached to it. And you're like, actually, you know, like 23 gets 84% of the benefits of diversification. I think it is. And, you know, you only get an incremental seven or whatever it is for 40 co…”
Harry Stebbings Feb 4, 2021 ▶ 16:44 20VC: Why VCs Should Care More About Cost of Capital and Less About Ownership, Investing Lessons from working with Peter Thiel at Founders Fund, Why Liquidity Aligns Incentives Between Founders and Investors & Why It Is The Last Double That Matters in Ven
20VC Assertion Not checkable as stated
Harry Stebbings: Venture portfolio diversification benefits level off at 23 companies
“I just yesterday ran a Monte Carlo simulation on kind of the benefits of diversification, and at 23, you get to 85%, and they tail off pretty significantly after that, so I couldn't agree more with you on the 25.”
Harry Stebbings Jun 25, 2018 ▶ 25:08 20VC: The 4 Key Skills All VCs Need To Be Successful, How To Build, Maintain and Scale Your Network in VC and What is The Process Through Which VCs Build Conviction in Opportunities with Max Motschwiller, General Partner @ Meritech Capital

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