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Are you a VC? If they really didn't care about their investment exits, that would be crazy.
by rawrawrawrr 2y ago
Are you a VC? If they really didn't care about their investment exits, that would be crazy.
- aorloff 2y agoI think they treat success and failure as mostly luck, with a tiny bit of hygiene The trick is being in the game long enough
- valval 2y agoAnd you’d be wrong of course, like any other random guess you could make about a topic you know nothing about.
- jhylau 2y agoIt’s not that they don’t care, of course they want to find winners. It’s just that A) there is so much capital to allocate that they have to allocate to marginal ideas B) their priorities are to raise their next fund which means focusing on vanity metrics like IRR and paper markups C) The incentive structure in VC pushes them to invested based on motivated reasoning. Remember VC returns are cyclical, and many vintages underperform the public markets and particularly large funds do worse simply because they have too much capital to allocate and too few great ideas.