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It means the three that have a liquidity event only need to cover 5/10 instead of 7/10. Is that not a helpful result?
by erikpukinskis 8y ago
It means the three that have a liquidity event only need to cover 5/10 instead of 7/10.
Is that not a helpful result?
- sebleon 8y agoHa, venture math is pretty hilarious. VCs basically need to give back their investors a 300% return in 10 years to make up for the risk they handle. Eg. For a $40M fund that's trying to grow to $120M, $1M here and there doesn't really move the needle.
- gowld 8y agoThe public NASDAQ has grown to 4x over the last 10 years. VC should do better or go home.
- charlesdm 8y agoNot quite. People invest in VC funds exactly because these returns are not correlated to the market (well, they sort of still are). It's diversification; people investing in these funds are generally NOT looking for similar returns to the public market.