The Kauffman Foundation just recently published a report on its venture capital investments. It’s pretty alarming.
One of the items they write about is how large VC funds tend to be correlated with poor investment returns:
Big VC funds fail to deliver big returns. We have no funds in our portfolio that raised more than $500 million and returned more than two times our invested capital after fees.
I’ve often believed that, too, and I have written about it in the past (more here).
This report is well worth reading. It really feels as though the time for “VC 2.0” is now. Something has to change. The full report is here.
Many thanks to Bijan Salehizadeh for first Tweeting about this report.