This is the best piece that I have ever read on the economics of VC and entrepreneurship. I wish that I had read it and really understood it when I was 20. It’s never to late to see the truth, that returns to startups are VERY skewed. This implies that we should only work on projects that might have a big impact. We should work with people that respect the randomness of the outcome, even when it’s not on the big side. Power law statistics are a bonus that give us some power to understand and manage the randomness.

SaaS entrepreneur/engineer. Founder of MAXOS, Real World DeFi. Previously founded Assembla, PowerSteering Software, on team at SNL Financial.