VC could be way more efficient if not for a profound lack of sophistication when it comes to portfolio management that leaves nearly every firm with extreme bag holder syndrome.
this can't be true right-- remember catching a factor analysis of a (mid/upper b tier) seed fund's irr a year or two back and the vast majority of paper irr growth was driven by keeping 0s off the books rather than growth of already clear winners.
-
-
Maybe this is just my fund then lol
-
still not convinced this isn’t another
@AdamNeumannsCoS or@GritGrowthCap alt - Show replies
New conversation -
-
-
I’m not clear how quick write offs would boost paper IRR, am I missing some math? Or do you mean the fund fraudulently hid write offs entirely?
-
Sorry, not clearly worded, paper IRR was massively improved by keeping companies that otherwise could go to 0 alive at flat rounds or small acquihires. Even 5-15m payouts helped stave off the low end
End of conversation
New conversation -
Loading seems to be taking a while.
Twitter may be over capacity or experiencing a momentary hiccup. Try again or visit Twitter Status for more information.