The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch cover image

20VC: Lessons from 32 Years of Fund Investing | Why Exits Will Be Larger & Funds Sizes Bigger | Top Reasons to Turn Down Potential Fund Investments | Fees, Carry, Deployment Pace; What Do LPs Inspect When Fund Investing with David Clark, CIO @ Vencap

The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch

NOTE

Funds can deliver high performance even at large sizes

Large funds can still deliver high performance exceeding 3x returns on an aggregate portfolio level. A study showed that mature funds from core managers have achieved a net multiple return north of 3x, around 3.5x on average. Moreover, less than 3% of funds have shown a TVPI of less than 1x, even spanning over decades through various economic cycles. Contrary to the belief that billion-dollar funds can't yield high returns, data revealed 45 investments returning a billion dollars or more, disproving this notion and highlighting the potential for substantial returns even from large funds.

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