Correlation Ventures study: Only 4% of startup investments return 10X+
Sumit Gajri · 20VC: Portfolio Construction, Optimising SPVs, Opportunity Investing "Between Rounds", Being Distribution-Centric Over Product-Centric and Capital Concentration Within Funds With Sumeet Gajri, Chief Strategy Officer @ Carta · Jan 17, 2020 · at 11:55
Sumit Gajri cites historical venture returns data published by Correlation Ventures to justify Original Capital's strict investment criteria for targeting high-upside outliers.
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“If you look at the work done by the folks over at correlation ventures, they published some research a couple of years ago, which looked at over 21,000 financings and their eventual exits over a decade. What they saw was four percent of investments yielded more than a 10 X return, and only 1.5% of investments yielded more than 20 X.”
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