Lackland: VC returns rely on a '2-6-2 rule' of 10x winners
BJ Lackland · 658: Startups, $120 Million Up For Grabs! As Close to "Free Money" as You Can Get. · May 13, 2017 · at 14:34
BJ Lackland, CEO of Lighter Capital and a former venture capitalist, contrasts traditional venture capital portfolio returns with revenue-based financing models.
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“So out of 10 investments, you needed two, you know, home runs or like two, 10 axes. Basically you needed six to kind of get your money back, you know, kind of math kind of things. And you knew that you were going to have at least two that were just complete washout. And if you did that, right, you were going to return probably a little over two, two and a half times your fund. And that's a successful fund for a VC.”
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