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VC firms don't have valuations. They raise funds and get paid a percentage of the funds under management (typically 2%/yr) for operating costs and a percentage
by tlb 7y ago
VC firms don't have valuations. They raise funds and get paid a percentage of the funds under management (typically 2%/yr) for operating costs and a percentage of the overall gains they make (typically 20%).
As far as reliability of results: an insider's view (perhaps slightly biased) is usually more reliable than an outsider's view (who doesn't know anything more than what's publicly reported.)
- tzakrajs 7y agoThanks for making this clear, I edited my statement to be reputation based and not valuation since the judgement of the firm is important for their ability raise funds.