1 Comment

“Venture Capital is an attempt to find a path through a chaos of creativity & creation in a kitchen full of possibilities”

Great analogy. When dealing with chaos, the path is more important than the desired outcome.

If you see venture capital investment (esp. in early stage) as a subproblem of decision analysis, the job of a VC has a lot of similarities with (mathematical / conceptual) modelling. Intuition plays a crucial role in the decision-making process. However, this intuition can also introduce biases that compromise the ability to evaluate all uncertainties related to a given decision coherently and objectively. Success hinges on adaptability and the insights gained along the journey, rather than merely reaching a predetermined goal.

If you want to fully leverage the potential of modelling, you need to prioritize clear and formalized logic over model output -- when dealing with chaos, the path is more important than the desired outcome.

Expand full comment