Scenario analysis is a common venture methodology to quantify investment risk. It involves building multiple exit outcomes with associated probabilities and calculating a probability-weighted return.
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This is the foundational methodology behind Tactyc’s Performance Cases which automatically computes weighted returns across performance cases. Starting today, Tactyc also shows a “memo-ready” weighted case analysis chart, complete with qualitative descriptions of each case.
This chart is available under the Performance Summary section of any investment that has multiple performance cases.
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Originally published in the Tactyc newsletter on February 21, 2023.
