Type II VC Error
Quiz question time: Making some reasonable assumptions about deals per year, success rates, etc., what is the likelihood that a first-time venture capitalist who is actually good at the stuff flops at his/her first four deals?In other words, what is the likelihood of Type II errors in venture capital funding, where LPs deem someone to be unskilled who actually happens to be skillful?
It is an important question, so answer and discussion in a subsequent post.
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