Agile VC

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Why Average VC Returns Don’t Really Matter

Agile VC

It’s true that FoFs provide LPs a way to purchase VC funds in a basket, but by design these are comparatively narrow actively-managed investment funds rather than broad-based passive vehicles. The same is not true for venture capital of course, since the underlying startups VCs invest in aren’t publicly selling their equity.

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Where Do Venture Capital Dollars Actually Come From? This Visual Explains

Agile VC

Most folks reading this will know that many startups were built in part with the help of venture capital. Some institutional investors simply aren’t big enough to have in-house employees to vet and manage a portfolio of VC funds. The first is a staff constraint. What Are These Intermediaries?

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The Rise & Fall of Great Venture Firms [Part 2]

Agile VC

1) Self-Awareness & Humility - These are of course virtues that transcend venture capital or even professional pursuits broadly. Though there might have been short term benefits to continuing to manage this fund, the long-run success of CRV would be hurt by doing so ( there’s an HBR case on this ).

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The Rise & Fall of Great Venture Firms [Part 1] ? AGILEVC

Agile VC

I happen to be fascinated by the history of the VC industry, and one of the things we discussed at a recent offsite are the common threads behind the rise and fall of great venture capital firms. The fixed ~2% management fees of course scale directly to AUM but the performance based ~20% carried interest also scales with AUM.

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The VC Shakeout: Are We There Yet?

Agile VC

There are some obvious structural reasons why a shakeout in the venture capital industry takes a long time. The reality is that it wasn’t until the GEC (Global Economic Crisis, Great Recession, Credit Crunch, call it what you will) of late 2008 and early 2009 that the shakeout really began for venture capital.

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