Eliminating flat or down rounds would double VC fund IRRs, says Friedberg
David Friedberg · Every Investor Needs To Understand This Concept - David Friedberg · Aug 27, 2025 · at 3:31
David Friedberg, founder of The Production Board, discusses capital allocation dynamics in venture capital while referencing data shared at a major LP conference.
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“45% of their capital went into flat or down rounds, and they had a negative net return on that allocation of capital across 13 funds, and if they had put that, if they had never invested in flat or down rounds, Then they would have doubled their IRR overall as a fund.”
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