Venture Funds With Over Seven Partners See Returns Plummet
Steve Jurvetson · 20VC: Steve Jurvetson on 20 Years of Friendship with Elon Musk, How To Analyse Market Timing, Why Venture Does Not Scale & Why He Has Never Sold A Share in Any Company He Holds · Aug 3, 2020 · at 46:24
Steve Jurvetson, co-founder of Future Ventures, discusses structural fund constraints and why venture capital fails to scale with partner headcount.
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“I don't think venture firms scale at all at headcount. One of the biggest things I've learned in the last 25 years is that team size is essential between two and five partners max. If you get to seven, you're at your limit. If you had more than seven partners, IRRs and returns will plummet, and this is part of the process learning I've gone through over the last 25 years.”
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