
Venture Capital Disrupts Itself: Breaking the Concentration Curse [pdf] - prostoalex
http://40926u2govf9kuqen1ndit018su.wpengine.netdna-cdn.com/wp-content/uploads/2015/11/Venture-Capital-Disrupts-Venture-Capital.pdf?utm_campaign=Mattermark+Daily&utm_source=hs_email&utm_medium=email&utm_content=24250382&_hsenc=p2ANqtz-_DxBH89PnrWAYSvp0bNcHyN8DDbAu23pQ-x9nXTuoo31tBWgq0mmE6a3mVggZCct3m3TpayGe27_D_TcOMob5y7ewbRA&_hsmi=24250382
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PabloOsinaga
I wonder about how much of the MOIC is driven by follow-on funding. Figure 4
indicates most of the value created came from early stage investing, but it
indicates that that's the "initial" deal stage. So it may well be that most of
the deals were really 25x+ MOIC deals at early stage - but the net fund MOIC
for most investors was lower because they did extremely strong follow on
rounds when they identified the company as a winner. If that's the case, the
implied message about "VC investing is NOT a power-law" may be misleading.

