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Re:If You Want to Go Broke, Listen to a Billionaire by tlb on Tuesday October 01, 2019 @07:26PM (#21131998)
The Kelly criterion works for serial bets, but since most startup bets take 10 years to pay off, you can only make a few in series over your lifetime.

You want to have many simultaneous investments. You can model this with Black-Scholes, except you don't know any of the parameters. So in practice, just put x% of your available capital into venture bets and put your energy into picking good startups.

Re:If You Want to Go Broke, Listen to a Billionaire by cjlars on Tuesday October 01, 2019 @08:19PM (#21132295)
I was typing up the same comment when your hit.

Kelly criterion is a great mental framework, but the math obviously doesn't work out for VC placements. The best alternative I've been able to come up with is to brute force / simulate thousands of different portfolio outcomes and optimize from there.