Thread by @shaig, Pitchbook has return data on 3,981 VC funds below $2B in size# [...]

Shai Goldman

shaig

Pitchbook has return data on 3,981 VC funds below $2B in size

# of funds (and %) who reached these DPI thresholds:
5x+ 57 (1.4%)
4x+ 88 (2.2%)
3x+ 187 (4.7%)
2x+ 532 (13.3%)
1x+ 1807 (45.4%)

some observations, thread

Venture is a terrible asset class as a whole. If you are looking at median returns, they are awful. LPs should understand that have to get into the top decile (top 10%) of funds. While top quartile (top 25%) is tossed around as a term, that isn't not the objective for the LPs

you read those numbers correctly, most of the funds don't return the full amount of capital that was contributed by the LPs. Venture is really a tough business.This is a narration (not data driven), there is some luck involved in this business but there is certainly some skill

of the 57 funds that had 5x DPI, only 10 of those were funds that were larger than $200M in size. Smaller funds overperform and this speaks to why emerging managers are a place you had to put money as a LP, it still surprises that many LPs aren't active in this catergory

65% of the Funds that generated a 5x DPI are actually sub $100M size funds

could only find 10 VC firms that had CONSECUTIVE 3x+ DPI funds:

Accel
Battery
Columbia
Edison
KPCB
Menlo
NEPA
Oregon Angel
Origin
Sequoia

of these firms, only two firms had three consecutive 3x+ DPI funds

Sequoia and Menlo

Firms that had four consecutive 2x+ DPI funds?

Sequoia, KPCB and Summit (was their 1st four funds when they were early and doing more venture/growth)

On the flip side, looking at the data, there is actually a fund that has a negative DPI after 10+ years

This is an incredible one. firms that have had two consecutive 10x+ DPI funds:

@sequoia @kleinerperkins and @OriginVentures

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