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I could recognize 80% of the companies in their portfolio. I guess that makes them pretty good at spotting good companies for investments. Comparing from the fa
by xoail 14y ago
I could recognize 80% of the companies in their portfolio. I guess that makes them pretty good at spotting good companies for investments. Comparing from the fact that generally when I see a VC firms' portfolio I could hardly recognize 50% of the companies. This could also mean they are taking less risks than usual.
- rdl 14y agoI think that metric works a lot better for seed investors vs. series B/C. There's a trick a lot of the newer or mediocre investors do -- put tiny amounts into popular late-stage financings of known winners, just so the investor can claim "we were an investor in all these great companies." Picking a great company at seed stage is harder. If you could have a seed-only portfolio where in 5 years someone knows even 50% of the companies (positively; not talking about investing in adelphia, etc.), you're doing amazingly well. Based on yclist, I'd say YC, one of the better seed-stage investors, is probably around 10-15% by that metric, assuming none of the YC companies not on yc list are "known".