Venture Capital Fund: Beyond Averages

About this model

A venture fund reviews 200 prospects a year, approves about 9 in 100, and invests one unit in each. Every investment returns a random multiple: nothing, its money back, or 2, 5, 10 or 100 times. Play it several times: the average deal returns about 1.6 times its cost, yet most funds end below that, because the rare 100x win decides the result.

"Venture Capital Fund: Beyond Averages" is a public Machinations diagram shared in the Community by Machinations, with 34 components.

It was created in October 2026 and last edited in October 2026.

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