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jmillerinc / angel_sim2.py
Created April 28, 2010 11:44
Revised Monte Carlo simulation of the payoffs to angel investing
#!/usr/bin/python
#
# Monte Carlo simulation of the payoffs to angel investing.
#
# Assume a pool of N different investors, each investing in D deals,
# with a fixed distribution of payoffs per deal. Randomly simulate
# each investor's combined payoff, then compute the mean and std dev
# of all payoffs in the overall pool.
#
# This gives an individual angel an idea of what kind of payoff &
@jmillerinc
jmillerinc / angel_sim.py
Created April 27, 2010 10:34
Monte Carlo simulation of the payoffs to angel investing
#!/usr/bin/python
#
# Monte Carlo simulation of the payoffs to angel investing.
#
# Assume a pool of N different investors, each investing in D deals,
# with a fixed time horizon and a fixed distribution of payoffs.
# Randomly simulate each investor's total payoff, then compute the
# mean and std dev of all IRRs in the overall pool.
#
# This gives an individual angel an idea of what kind of payoff &