Presentation - 1
Presentation - 1
Presentation - 1
http://ssrn.com/abstract=2564040
Investors
Exit
VC
Portfolio Companies
The Challenge
Checking-In On VC
Over the Past Decade
62% of funds failed to exceed market returns after factoring
for fees, carried interest to GPs
Only 20% of funds produced returns that beat capital
markets by more than 3%
Of $30B invested in VC on annual basis, only $10B capable
of positive returns
Investment
committees and
trustees should
shoulder blame for the
broken LP investment
model as they have
created the conditions
for the chronic
misallocation of
capital.
-Kauffman Foundation
Maybe some
percentage thats
substantially larger
than 95 percent of VCs
add zero value. I
would bet that 70-80
percent add negative
value to a startup in
their advising.
-Vinod Khosla
Founding Partner of Kohsla Ventures
Venture Capitalists
It Was
Certainly
Time to Get
Back to the
Drawing
Board
mattermark
Visibility
Innovation
Hyperactivity
Disruptive
Leanings
Assessment Criteria
Risk Appetite
Activity Level
Exit Performance
League Tables
1. Felicis Ventures
2. SV Angel
3. FLOODGATE Fund
4. First Round Capital
5. Harrison Metal Capital
6. SoftTech VC
7. Lowercase Capital
8. Sequoia Capital
9. Atlas Venture
10. RRE Ventures
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
CrunchFund
Founder Collective
Lerer Hippeau Ventures
New Enterprise Associates
Khosla Ventures
Accel Partners
True Ventures
Greylock Partners
Freestyle Capital
Draper Fisher Jurvetson
-Bill Gurley
AboveTheCrowd.com
Benchmark Capital
-Hunter Walk
Homebrew.co
Homebrew
Visibility
1. Index Ventures
2. Kima Ventures
3. Balderton Capital
4. Advent Venture Partners
5. Sofinnova Partners
6. Holtzbrinck Ventures
7. Alven Capital Partners
8. Northzone Ventures
9. DFJ Esprit
10. Episode 1 Ventures
Hyperactivity
VC Platforms
Institutional Investors
Entrepreneurs/startup companies
Institutional Investors
Entrepreneurs/startup companies
Institutional Investors
1%
99%
Entrepreneurs/startup companies
One-Size-Fits-All Approach
Investor
s-limited
partners
Management
Company
Genera
l
Partner
Limited Partnership
Stock,
Commodities
, Cash
Mature
private/pub
lic
companies
High
potential
start-ups
Alternative Investments
Co-investment rights
Co-investment rights
Co-investment rights