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.
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