The answer is that both numbers are negotiated and are influenced by a variety of factors, some driven by the startup and its needs, and some by the VCs and our needs.
Patrick Vernon • Venture Capital Strategy: How to Think Like a Venture Capitalist
VC Math Explained To Founders: The High-Stakes Game Of Startup Funding
forbes.com
But I thought a better way of thinking about how we manage our portfolios is to think about it as a funnel. If we do 36–40 deals in a Seed Fund, somewhere between 25–40% would likely see big up-rounds within the first 12–24 months. This translates to about 12–15 investments.
Both Sides of the Table • What Does the Post Crash VC Market Look Like?
However, investing in a higher number of billion-dollar companies does not necessarily mean a greater success level for a VC firm, as measured by return of the fund. Some firms may have larger fund sizes and hence invest in more companies. Some don’t lead deals and are not ownership sensitive. Analyzing what percentage of a firm’s bets that became
... See moreAli Tamaseb • Super Founders: What Data Reveals About Billion-Dollar Startups
Of the billion-dollar companies in my dataset, about 60 percent had raised their first round of financing from tier-one (brand-name) venture capital firms like Sequoia, Andreessen Horowitz, Benchmark, or Accel, while less than 20 percent had raised from tier-one VCs in the random group, another significant difference observed among the two groups.
... See moreAli Tamaseb • Super Founders: What Data Reveals About Billion-Dollar Startups
The growth model for this imaginary app runs from bottom left to top right. The boxes represent absolute numbers: the number of website visitors, conversions, and churned users. The arrows represent conversion percentages, like the conversion rate from visitor to trial user.
Matt Lerner • Growth Levers and How to Find Them
In other words, while both venture capital and growth equity firms are looking for the next Seamless, Uber or Netflix, the evidence of a startup becoming a market leader needs to be much stronger in growth equity. Since the risk profile is relatively lower compared to traditional venture capital, target ROI here is a little lower and typically exis
... See moreBradley Miles • #BreakIntoVC: How to Break Into Venture Capital And Think Like an Investor Whether You're a Student, Entrepreneur or Working Professional (Venture Capital Guidebook Book 1)
