SaaStr · 2015-09-24 · 3905d

Does Venture Capital Generate Positive Returns in Aggregate?

The article examines whether venture capital funds are money-losing ventures overall. While aggregate outcomes are unclear, the average venture fund returns less than $1 per $1 invested, though top-performing funds can return $10 per $1 invested, suggesting extreme performance variance in the VC industry.

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Metrics in this report

Fund Return Multiple - Average

<1Multiple of invested capital

mean

All venture capital funds

Fund Return Multiple - Top Quartile

10Multiple of invested capital

p75 or higher

Best-performing venture capital funds