
The meeting that showed me the truth about VCs (2017) - mmt
https://techcrunch.com/2017/06/01/the-meeting-that-showed-me-the-truth-about-vcs/
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gomox
Re: the comparison with stocks: the stock market only averages 7% on long time
series (30ish years). If you add the constraint that you must cash out in a
fixed 10 year span, 7% returns are harder to find. No bond-like low risk
product has that kind of return.

With that in mind, there is a lot of capital available with lower expectations
but no access to the US stock market. Here in Argentina any product that is
independent from local instability and has 4% returns would be a blockbuster
(if in doubt, check the news).

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mmt
> the stock market only averages 7% on long time series (30ish years)

I believe that's inflation-adjusted, whereas the article seems to be ignoring
inflation, other than mentioning it once.

> If you add the constraint that you must cash out in a fixed 10 year span, 7%
> returns are harder to find.

That constraint doesn't actually exist, from the investor's POV. That is, an
investor has the choice of investments with or without that constraint. The
fact that VCs have it doesn't mean they're not competing against funds aren't
constrained.

