Venture returns depend on company quality, exit ownership, and entry price
Gaurav Jain · We Turned Pre-Seed Into a $10 Billion Category | Gaurav Jain, Afore Capital · Jul 17, 2026 · at 35:01
Gaurav Jain, founder of Afore Capital, describes his core framework for venture capital fund returns and portfolio math.
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“In our business, I think three things matter in that order. I think number one, it's a parallel business. So you've got to be in the best companies. A few companies end up driving the returns, whether it's for your fund or for the industry, and you've got to be in those companies. Number two is ownership. Where you want to own as much as you can of these companies, not just at the entry, but at the exit, right? It's not where you start that matters is where you end up, right? Obviously very hard to increase ownership in best companies, so you better start strong, but it's all about where you exit. And number three is the entry price, right?”
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