Uncategorized

TechCrunch: Three realities about venture capital

Three Realities About Venture Capital

This is a pretty good summary of the VC universe, especially the part that those outside of startups are less concerned with, namely where the money comes from.

I think the article does miss one point, focusing on venture capital’s overall market performance: VC is high-risk, high reward. Investors are tolerating typically sub-par returns in exchange for the opportunity for a 20x, 50x or 100x ROI. It makes sense that this is popular in the US, and less so elsewhere. It also stands to reason that the more risky, more adventurous firms are probably going to be more appealing to their clients (the ones with the money, not the ones receiving it).

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s