John Taylor, Head of Research at the NVCA, compares projected future startup IPO exit rates against the 14% rate achieved in the 1990s.
Assertion Partly 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%.”
Assertion Not 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.”
Assertion Partly supported
NVCA research finds venture capitalists max out capacity at six board seats
“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 …”
Assertion Supported
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 …”
Assertion Supported
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…”
Assertion Supported
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.”