The central point of the post below is that risk is the product of venture capital, and some managers understand that better than others. Many of the replies talk about the futility of 'financial engineering', and how concepts like portfolio construction are less relevant to early stage VC due to the greater... See more

The quote below, from @WillManidis, is worth the consideration of every venture investor, GP and LP. (It's also core to the mission of @equidam: making idiosyncratic ideas more legible for finance.) As a product of incentives, capital in VC has gravity. It is inclined to collect in pools,... See more