VCs are akin to modern-day Maharajahs, destiny's chosen children, who throw vast sums of money behind ideas and teams to create contemporary magic. Sebastian Mallaby's The Power Law is a virtuoso account of the VC world and its key tenets
VCs work on a simple principle of backing seemingly implausible ideas where a single outperforming investment will make up for the entire fund
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Growing up, we all learnt that most things in life, if not all, follow the Gaussian Bell curve distribution. A Gaussian world, where most fall around an average, appears to be much more probable, unbiased, expectable, and visually symmetrical. Most of our knowledge and education is still based on “normal” distributions and quantum thinking is still relatively alien to us.