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A16Z's superpower is branding and getting their name out there. Their fund returns are well below Sequoia & co
by bspear 4y ago
A16Z's superpower is branding and getting their name out there. Their fund returns are well below Sequoia & co
- gojomo 4y agoNot sure this "well below" knock is true in recent years – what's the best source of data? But even if it was: is a VC's multi-decade record more valuable to a founder than other in-the-now considerations? And, while ideally VCs & founders in the same firm rise with the same tide, cooperatively, synergistically, there can be a margin at which a VC's lower returns could mean higher returns for other owners, like the founders & team.
- vmception 4y agoare fund returns tracked properly... anywhere? My experience with being a limited partner (LP) in ... places... is that each LP experiences wildly different returns based on what deals they are part of. Its not like you invest in these kinds of funds at a certain watermark and hope your investment is at the time where things go up. you have no exposure to prior investments no matter how awesome or poor they were. For funds that collect all the capital up front and close off, maybe thats fine. For hedge funds (with a neat sidepocket) or other more open-ended funds it seems like you need multiple graphs based on when invested.
- smabie 4y agoExactly this: speaking from experience fund returns are highly bespoke and depend on the individual LP. People should be very weary of publicly stated returns, especially for VC funds.