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  1.  
  2. Posts tagged: monte carlo

A Simulation of Angel Investing, Part 2

May

16

2012

This is a follow-up to my post A simulation of angel investing. Several readers commented on Hacker News that my first stab at a simulation was misleading because it showed negative average returns for low deal sizes, when in fact expected returns should be not only positive but constant regardless of deal size. They are ...
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Angel Investing Statistics · Expected Returns

investing statistics · monte carlo · statistics

A Simulation of Angel Investing

May

16

2012

In angel investing, it’s the extreme distribution of payoffs that keeps things interesting. If anything, it resembles buying a deep out-of-the-money call option, but with nonlinearity. If you win big you might find yourself in on the ground floor of the next Google or Facebook. That’s incredibly unlikely, but still possible. More likely, you’ll end ...
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Angel Investing Statistics · Expected Returns

investing statistics · monte carlo · number of deals

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