3 ms·
Haha true! Although it's the "not realized rate of return." That might be good enough to raise another fund and live out of generous management fees, but it is
by nbstme 5y ago
Haha true! Although it's the "not realized rate of return." That might be good enough to raise another fund and live out of generous management fees, but it is not sufficient to realize financial performance - making money when the business sells out or IPO.
- m_ke 5y agoPublic markets have the same incentives, as long as there's growth stonks go up. Late stage firms have relationships with banks and the return of SPACs made dumping roided up donkeys easier than ever.
- nbstme 5y agoWarren Buffet claims that his mentor Benjamin Graham once wrote: "In the short run, the market is a voting machine, but in the long run, it is a weighing machine" In the long run, fundamentals matter, and only the best business thrives.
- m_ke 5y agoYes but VC funds have a fixed window, their goal is to deploy their money in the first 3-5 years and show returns in under 10.