A $10M-$15M startup return doesn't move the needle for a $350M fund
Mayank Khanduja · When your competitors raise heavily from VC's | Mayank Khanduja, SAIF Partners · Aug 20, 2019 · at 11:50
Mayank Khanduja, Partner at SAIF Partners, explains fund return math and why mid-size venture funds require outsized 10x-100x outcomes.
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“I think for a fund like ours which is a three fifty million dollar fund we need to make bets on companies that are likely to be very large outcomes because getting Let's say I invest a million dollars in, in a company and get 10, fifteen million dollars out of it. On paper, it's a very good multiple, but for a fund of our size, a 10, fifteen million dollar return doesn't move the needle because the companies that, that are going to be successful, they need to be wildly successful because there will be a lot of companies that will not do well which is just the nature of venture investing.”
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