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.
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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
