IA Ventures targets 24 deals per fund to find two returners
Roger Ehrenberg · Fireside Chat: Roger Ehrenberg, Managing Partner at IA Ventures (FirstMark's Data Driven) · May 18, 2018 · at 15:52
Roger Ehrenberg, Managing Partner at IA Ventures, details the fund's portfolio construction and expected return distribution under power law dynamics.
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“We found in our, kind of, the power law reality of venture that we would much rather take 24 gigantic swings in a portfolio over a four-year period and work Hopefully that two will be multiple fund returners and that the next six, so call it two super performers, six good performers that cumulatively return one to one and a half X the fund and then 16 Some kind of outcome to shut it from shutting down to a low return of capital. That's kind of the model.”
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