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VC failure rates

• sanj 19y ago
  There are a few data points missing from this analysis: like over what timeframe the 5x returns were realized: I can get that over 20 years with an 8% return!
  • far33d 19y ago
    Most VC funds have a 10 year lifetime, so all investment returns are for some period less than that.
  • sethjohn 19y ago
    Very good point, but it seems more likely that poorly performing companies have a rather short (several years) lifetime.
• sethjohn 19y ago
  How will the YC model compare? I'd guess a higher percentage of failures and higher average return on the successful companies. (It's a lot easier to get 50X when you only invest $15K to start with!)
  • deleted 19y ago
    [deleted]
  • pchristensen 19y ago
    From what PG has said (can't find the thread), most of the companies are still intact and the success rate is much higher than the average for VCs.
    • sethjohn 19y ago
      Yeah, that could be right. Of course, "intact" doesn't mean that they will have a profitable exit.
• pg 19y ago
  It's rare to get this kind of info out of a VC. I'm impressed with Fred's openness.