Monday, September 24, 2012

How Successful Are Venture Capital Investors?

 The Wall Street Journal recently reported that, of the 6,613 U.S, based companies that were initially funded by venture capitalists from 2006 through 2011,11% were acquired or had IPOs. In other words, they could be considered, in my estimation, to be successful deals as venture capitalists see it.

About 84% were independent and still operating, and 5% or so went out of business.

What was not said was among those 84% or so, had  to be many struggling independents. The exit strategy for venture capitalists is to be acquired or to go public in about five years for a big payoff,

That 11% figure for IPO or acquisition must include a big winner.
(See the Earl J. Weinreb NewsHole® comments.)




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