John Taylor, Head of Research at the National Venture Capital Association (NVCA), shares findings from joint research with Dow Jones regarding venture partner board seat capacity.
0:00 / 0:23exact quote · 23.7s
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“We've done a study now, we did it back Right after the bubble, and we've revisited it once or twice with Dow Jones, looking to see what this, what a typical workload, a board level workload is of a venture capitalist, and the number comes back six, and it was true during and after the bubble, it's been true since, that a venture capitalist with six board seats has a very full workload”
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More from John Taylor
AssertionPartly supported
Venture capital funds historically returned 25% to 30% net to LPs
“Historically, venture capital funds have returned to their investors net about 25 to 30%.”
John TaylorApr 23, 2015▶ 4:2220 VC 030: VC Funds, Angels and IPOs with John Taylor, Head of Research @ NVCA
PredictionDidn’t hold up
Taylor predicts only 5% to 6% of recent startups will IPO
“Now, because it takes so long, it's very hard for us to know you know, what the current crop of companies or even the crop of companies eight or 10 years ago what their outcome will be. But my guess is it's going to be five Maybe six percent. It's just a much,…”
John TaylorApr 23, 2015▶ 10:3120 VC 030: VC Funds, Angels and IPOs with John Taylor, Head of Research @ NVCA
AssertionNot checkable as stated
Aging populations prevent pension funds from committing to VC lockups
“But with the pensions now seeing aging populations, they're generally not in a position to be doing the 10 to 12 to 14 year lockup, which a venture capital fund typically is. They can't commit to that level time frame of the liquidity.”
John TaylorApr 23, 2015▶ 2:4220 VC 030: VC Funds, Angels and IPOs with John Taylor, Head of Research @ NVCA
AssertionSupported
Active venture capital firm count dropped 30% between 2010 and 2015
“I think also you have to look at where venture is, and over the past four or five years, we, we've seen a reduction in the number of firms, a slight reduction in the amount of capital available, but A significant 30% reduction in the number of firms out there …”
John TaylorApr 23, 2015▶ 17:1020 VC 030: VC Funds, Angels and IPOs with John Taylor, Head of Research @ NVCA
AssertionSupported
Late-stage venture capital round sizes expanded by 40% to 50%
“And that is that the VCs themselves are coming to the table with roughly the same amount of money they have the past few years. But we're seeing the total amount invested, the total size of these rounds expanding by, you know, 40, 50%. The total amount of vent…”
John TaylorApr 23, 2015▶ 18:2320 VC 030: VC Funds, Angels and IPOs with John Taylor, Head of Research @ NVCA
AssertionSupported
Institutional LPs seek 300 to 500 basis points over public markets
“Lots of times you'll hear institutional investors saying that they want at least 300 to 500 basis points better than what they think they can do in the public market.”
John TaylorApr 23, 2015▶ 3:5420 VC 030: VC Funds, Angels and IPOs with John Taylor, Head of Research @ NVCA
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