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VC investment is characterized by frequent losses with the occasional outsized return. From what I've seen, they have a pretty good record with this frame in mi
by revel 7y ago
VC investment is characterized by frequent losses with the occasional outsized return. From what I've seen, they have a pretty good record with this frame in mind. How do they compare, peer-vs-peer? It's almost impossible to say since so few VC funds are public and because accounting presentation standards can vary wildly.
- nordsieck 7y ago> From what I've seen, they have a pretty good record with this frame in mind. I've always wondered if this is true over the industry. Obviously the top line VC firms perform quite well, but I'd imagine there is huge survivorship bias here (much like the rest of the actively managed investment industry).
- aussiegreenie 7y ago>pretty good record with this frame in mind No, they don't. The average VC does not even return the S&P let alone make significate returns. You always hear about funds making huge profits but that is for one particular fund for one particular VC. Even the best of them struggle to match 10-year index funds due to their cost structure 2+20%. Large fund make heaps of money for the GP but not for the investors.
- chewz 7y agoVCs is the worst asset class - returns do not compensate for lack of liquidity.