The paper doesn’t say VC risk is high. It says that 50% of the investments are predictably bad and can be safely dropped because there are better risk adjusted alternatives in the public markets (stocks or bonds) and dropping these would boost returns.

I know he seems to score returns on features such as funding raised and the founder’s background (he claims VCs over value the background). But how do they compare those features with bonds and stocks? I was expecting sales growth, margins or P/S ratios to be the features.

Can someone parse the feature set and algo used?