4 ms·
~20x isn't close in the pantheon of record venture deals, especially when normalized to an IRR (annual return). Benchmark Capital is often cited since their $6
by nikcub 14y ago
~20x isn't close in the pantheon of record venture deals, especially when normalized to an IRR (annual return).
Benchmark Capital is often cited since their $6M investment was worth 500M+ at IPO less than a year later and then eventually ballooned to being worth $5B as shit got crazy.
the 12.7M Accel invested into Facebook in the A was worth ~$10B at IPO. I think even that is less on IRR than the ebay deal
- kunle 14y agoTrue, but probably >200 of those companies are still active, and its only been 7 years. Would you bet that that 20X return so far is going lower?
- karamazov 14y agoYou can't compare the entire fund to returns on a single deal. The investment in dropbox, conservatively assuming a 20k investment with dilution to 1% and sticking to the $4B valuation, is already a 2000x return. The actual return will probably be much higher, as DropBox's value will continue increasing.
- ajross 14y agoRight, but those are single deals. You could show similarly silly numbers for YC/Heroku, etc... How did Benchmark and Accel do in aggregate is the question? I don't think that data is public, is it?
- deleted 14y ago[deleted]
- pbreit 14y agoJeez, nik, the person wrote "venture _fund_" and you're comparing to individual deals?