How Well Have VC-Backed Investments Performed?
n15% of returns of IPOs > 1000%; 15% of returns of
IPOs are 0%; 35% are <
100%; modal (most probable) is 25% - data per study by John Cochrane, University of Chicago
nOverall, VC-backed investments have resulted in
substantial returns relative to
other asset classes…average range of returns quoted is typically 25% - 30% over 20 years
nPortfolio diversification is inherently difficult in VC
investing, but VCs often attempt
to diversify by stage and sector
