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Yes -- there are many Zombie VCs. And glad to see Danielle doing this stuff but you have to be careful in drawing these conclusions. First, many funds don't d
by asanwal 14y ago
Yes -- there are many Zombie VCs. And glad to see Danielle doing this stuff but you have to be careful in drawing these conclusions.
First, many funds don't do Series A's. That is their strategy. At the top of the spreadsheet are several funds that are mid, later, growth and private-equity stage firms (IVP, Warburg). Them not doing Series As has less to do with their Zombie status then them adhering to their strategy.
While there are other issues with the data as highlighted below, this issue of fund strategy is a critical one so wanted to highlight.
Also, picking short timeframes of 3 months or 1 month isn't a great test as funds have 7-10 year lifetimes. A couple of months doesn't make for a trend.
Again, we think there is value in highlighting this data as there tends to only be good news reported but just would caution against errant conclusions.
Notes:
I'm one of the co-founders of CB Insights and our firm tracks this data. We actually help LPs (the investors in VC funds) identify VCs doing poorly or who appear to be the walking dead. But it's messy as hell.
More on that here for folks interested - http://www.cbinsights.com/team-blog/investor-analytics-zombie-venture-capital/ http://www.cbinsights.com/team-blog/investor-analytics-zombi... (warning: part informational and promotional)
- nsiemsen 14y agoDo you have a team that sources all your data for you or does it come from CrunchBase? (is that the CB?)
- asanwal 14y agoWe started a company called ChubbyBrain (CB is our tribute to that). 0% of our data is from crunch. In terms of where it comes from: 80% of our data comes via software we've built to parse news, SEC, investor, corporate websites (we crawl about 12k of them daily). About 20% of our data comes directly from investors. The biggest contingent is angel data which we get via a partnership we have with Silicon Valley Bank and the Angel Capital Association.
- antr 14y agoAnother great thing about Danielles's post is that this will hopefully incentivise funds/investors to update their public information on databases such as CrunchBase. I'm pretty sure some investors are not happy to see their name on that list, not because they are "zombies" but due to a simple case of not updating their transactional/deal information.