3 ms·
"The rule of thumb among venture capitalists is that some 20 percent to 30 percent of companies fail, returning nothing to any investor, including the venture c
by larrys 13y ago
"The rule of thumb among venture capitalists is that some 20 percent to 30 percent of companies fail, returning nothing to any investor, including the venture capitalists."
I believe that number is the mirror. It should say "20 to 30 percent" succeed.
- winterchil 13y agoThe number that return <1x is significant too. Out of 10 investments typically you'll have 1 big hit, 2-3 decent returns (2-5x on investment) and a bunch of "failures" which would be anything less than 1x. Depending on the VC it's possible anything less than 3x is considered a failure because of the opportunity cost and their inability to re-invest proceeds.