5 ms·

Fred Wilson gave a nice overview.[1] Indeed not much better than other investments. [1]: http://avc.com/2013/02/venture-capital-returns/ http://avc.com/2013/02

Fred Wilson gave a nice overview.[1] Indeed not much better than other investments. [1]: http://avc.com/2013/02/venture-capital-returns/ http://avc.com/2013/02/venture-capital-returns/

DaniFong 12y ago
The returns for top notch VC firms like a16z and the returns for VC as a whole are like a difference in kind.
- foobarqux 12y ago
  Sure, but they still aren't abnormally outsized, probably even before adjusting for risk. If they were they would do like the very top hedge funds and charge more than 2/20. If you know specific rates of return please share.
  - ironchef 12y ago
    A set of example return information (albeit old and only from the first fund) is here: http://finance.fortune.cnn.com/2012/07/23/nice-ira-andreessen-horowitz-returns-first-fund-twice-over/ http://finance.fortune.cnn.com/2012/07/23/nice-ira-andreesse... I would anticipate there would be diminishing returns over time as the "bets are spread" if you will... that being said they're doing a damned amazing job so far.
    - foobarqux 12y ago
      Besides being only a single data point the returns for one $300M fund aren't a good indicator of the returns for 2-3 concurrent $1+ billion dollar funds.
      - ironchef 12y ago
        I concur...that's why I said: "only from the first fund" and "I would anticipate there would be diminishing returns over time as the "bets are spread" if you will". That being said it is counter to your statement "Sure, but they still aren't abnormally outsized, probably even before adjusting for risk." That particular data point is quite higher than both the median and the means of VC returns that I've seen (and would probably lend more credence towards DaniFong's statement). I look forward to seeing how their other funds progress so that we have more data points. note: edited in a paren that was missing.
- deleted 12y ago
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5 ms·

Fred Wilson gave a nice overview.[1] Indeed not much better than other investments. [1]: http://avc.com/2013/02/venture-capital-returns/ http://avc.com/2013/02

by bulltale 12y ago

Fred Wilson gave a nice overview.[1] Indeed not much better than other investments. [1]: http://avc.com/2013/02/venture-capital-returns/ http://avc.com/2013/02/venture-capital-returns/

DaniFong 12y ago
The returns for top notch VC firms like a16z and the returns for VC as a whole are like a difference in kind.
- foobarqux 12y ago
  Sure, but they still aren't abnormally outsized, probably even before adjusting for risk. If they were they would do like the very top hedge funds and charge more than 2/20. If you know specific rates of return please share.
  - ironchef 12y ago
    A set of example return information (albeit old and only from the first fund) is here: http://finance.fortune.cnn.com/2012/07/23/nice-ira-andreessen-horowitz-returns-first-fund-twice-over/ http://finance.fortune.cnn.com/2012/07/23/nice-ira-andreesse... I would anticipate there would be diminishing returns over time as the "bets are spread" if you will... that being said they're doing a damned amazing job so far.
    - foobarqux 12y ago
      Besides being only a single data point the returns for one $300M fund aren't a good indicator of the returns for 2-3 concurrent $1+ billion dollar funds.
      - ironchef 12y ago
        I concur...that's why I said: "only from the first fund" and "I would anticipate there would be diminishing returns over time as the "bets are spread" if you will". That being said it is counter to your statement "Sure, but they still aren't abnormally outsized, probably even before adjusting for risk." That particular data point is quite higher than both the median and the means of VC returns that I've seen (and would probably lend more credence towards DaniFong's statement). I look forward to seeing how their other funds progress so that we have more data points. note: edited in a paren that was missing.
- deleted 12y ago
  [deleted]