Is venture capital a money-losing venture in aggregate? Why?

Q: Is venture capital a money-losing venture in aggregate? Why?

Probably.  It’s not 100% clear if it’s money losing in the aggregate from a $$$ invested perspective … but the average fund loses money.  That’s clear.

The average venture fund returns less than $1 for every $1 it is given to invest.

But the very best funds return $10 for every $1 they are given.

So average is for suckers.  It really is.

But figuring out who will be the next outlier VC, though … can return more than almost anything else you can invest in.

 

View original question on quora

Published on September 24, 2015

Pin It on Pinterest

Share This
[{"code":""
[{"code":""
"label":"Not quite"
"label":"Not quite"
"win":false}
"win":false}
{"code":"WHEEL10"
{"code":"WHEEL10"
"label":"10% Off"
"label":"10% Off"
"win":true}
"win":true}
{"code":"WHEEL15"
{"code":"WHEEL15"
"label":"15% Off"
"label":"15% Off"
"win":true}
"win":true}
{"code":"WHEEL30"
{"code":"WHEEL30"
"label":"30% Off"
"label":"30% Off"
"win":true}
"win":true}
{"code":""
{"code":""
"label":"Free VIP Pass"
"label":"Free VIP Pass"
"win":true}
"win":true}
{"code":"WHEELVIP"
{"code":"WHEELVIP"
"label":"Free VIP Pass"
"label":"Free VIP Pass"
"win":true}
"win":true}
{"code":""
{"code":""
"label":"Spin again"
"label":"Spin again"
"win":false}
"win":false}
{"code":"WHEEL10"
{"code":"WHEEL10"
"label":"10% Off"
"label":"10% Off"
"win":true}
"win":true}
{"code":"WHEEL25"
{"code":"WHEEL25"
"label":"25% Off"
"label":"25% Off"
"win":true}
"win":true}
{"code":"FREESHIPPING"
{"code":"FREESHIPPING"
"label":"Spin again"
"label":"Spin again"
"win":false}
"win":false}
{"code":""
{"code":""
"label":"Almost"
"label":"Almost"
"win":false}
"win":false}
{"code":"WHEEL25"
{"code":"WHEEL25"
"label":"25% Off"
"label":"25% Off"
"win":true}]
"win":true}]