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Accel Partners is obviously a top shelf group but they are still in the venture capital game. The industry in general relies on a minority of investments paying
by trotsky 16y ago
Accel Partners is obviously a top shelf group but they are still in the venture capital game. The industry in general relies on a minority of investments paying well enough to cover a majority of investments that never recoup. Since a decision to invest $10M into a company that later fails (or fails to recoup) qualifies as overvaluing an asset, Accel must be overvaluing some of their assets. In fact, on industry average, VC firms are in the business of overvaluing individual assets a majority of the time.
- wheels 16y agoA critical word in what I said was aggregate assets, and a critical word in yours was outlandish. Sure, the median venture investment will be overvalued, but for it to be outlandishly overvalued would imply that it's unreasonable even within its asset class. That's a strong claim to make with next to zero data given that people with a wealth of data and a track record of making sense of that type of data obviously disagree.