To my eye, the story here is how awful VC is as an asset class.
Like, this is as good as it gets, guys. This is it. Even with these returns being kinda so-so (relative to the lack of liquidity, ten year return cycle, et cetera), these guys are easily in the top five percent of VC firms.
Dumb old index funds are going to roughly double your money in ten years with reinvestment of dividends. If a VC can't hit 3x, the numbers don't really add up to make it worth your while to write a big check and just park it for a decade.
The point of the article is that even the best of the best can miss those numbers and still be in the top fifth percentile.
Like, this is as good as it gets, guys. This is it. Even with these returns being kinda so-so (relative to the lack of liquidity, ten year return cycle, et cetera), these guys are easily in the top five percent of VC firms.
Dumb old index funds are going to roughly double your money in ten years with reinvestment of dividends. If a VC can't hit 3x, the numbers don't really add up to make it worth your while to write a big check and just park it for a decade.
The point of the article is that even the best of the best can miss those numbers and still be in the top fifth percentile.
Yikes.