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Any source for the 20-30% claim? I find that very hard to believe.
by xorfish 7y ago
Any source for the 20-30% claim? I find that very hard to believe.
- clomond 7y agoSeen it referenced a few times, some digging around will get you there. Also an angel investor spoke at my university about how they invest, and mentioned returns of 23%/24% annualized if I recall - but this was asterisked with "your portfolio of companies must be greater then 20 - any less and you risk losing everything". And, your money is essentially "locked" for 5-10 years (can only get your cash when there is a liquidity event - if one happens at all) Found this: http://www.industryventures.com/2017/02/07/the-venture-capital-risk-and-return-matrix/ http://www.industryventures.com/2017/02/07/the-venture-capit... And: http://www.angelblog.net/Venture_Capital_Funds_How_the_Math_Works.html http://www.angelblog.net/Venture_Capital_Funds_How_the_Math_... But given there are many different flavors, sizes, vectors etc of VCs, and given many keep their numbers hush, hush - I wouldn't even know where to look for any kind of "official" numbers on it.
- xorfish 7y agohttp://www.industryventures.com/wp-content/uploads/2017/02/Pic-3-v2.png http://www.industryventures.com/wp-content/uploads/2017/02/P... If you add the averages of each category(75x for the last category) in this source, you'll end up with an annualized return of 9.4% over the 10 years mentioned in the image. That is not far of the average return of the SP500.