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The best VC firms do make that in their best years. VC is a strange field in that the winners have outsize performance, while the rest fight to break even. Un
by mathattack 11y ago
The best VC firms do make that in their best years. VC is a strange field in that the winners have outsize performance, while the rest fight to break even. Unlike Mutual Funds and most hedge funds, the performance of top VCs persist over time too. Remember that this is a field that disproportionately rewards the winners. (Look at Google's early investors making 1000x [0])
The 40% isn't what investors see. Take away 2% per year for expenses and 20% of the upside and you're down to 30% for investors.
[0]https://www.quora.com/How-many-shares-did-Andreas-von-Bechtolsheim-receive-for-his-first-100k-Google-investment https://www.quora.com/How-many-shares-did-Andreas-von-Bechto...