Finding Genius: Venture Capital and the Future it is Betting on

Out of more than 21,000 venture financings from 2004 to 2014: 65% lost money. Two and a half percent of investments made 10x–20x. One percent made more than a 20x return. Half a percent—about 100 companies out of 21,000—earned 50x or more. That’s where the majority of the industry’s returns come from.

Of every twenty startups, usually only one will become a runaway success story, providing a 10X or even a 100X return to VC investors (see Figure 2).