In VC mathematics, you always divide by the entire lifetime of the fund to calculate your rate of return, because there's no recycling allowed. You also got to

In VC mathematics, you always divide by the entire lifetime of the fund to calculate your rate of return, because there's no recycling allowed. You also got to factor in compound interest and management fees, so in Socialcam's case, this works out to about 3-4% return. Dan Shapiro explained it well here: http://www.danshapiro.com/blog/2010/08/vc-insanity-economics/ http://www.danshapiro.com/blog/2010/08/vc-insanity-economics... edit: calculating Socialcam's ROI