

VC failure rates - sanj
http://www.unionsquareventures.com/2007/11/failure_rates_i.html

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sanj
There are a few data points missing from this analysis: like over what
timeframe the 5x returns were realized:

I can get that over 20 years with an 8% return!

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far33d
Most VC funds have a 10 year lifetime, so all investment returns are for some
period less than that.

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pg
It's rare to get this kind of info out of a VC. I'm impressed with Fred's
openness.

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sethjohn
How will the YC model compare?

I'd guess a higher percentage of failures and higher average return on the
successful companies. (It's a lot easier to get 50X when you only invest $15K
to start with!)

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pchristensen
From what PG has said (can't find the thread), most of the companies are still
intact and the success rate is much higher than the average for VCs.

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sethjohn
Yeah, that could be right. Of course, "intact" doesn't mean that they will
have a profitable exit.

