http://deepdarksee.com/blog/2006/01/top-10-lies-of-entrepreneurs/ Misc ramblings along the way... Tue, 29 Dec 2009 00:01:14 +0000 hourly 1 http://wordpress.org/?v=3.0 http://deepdarksee.com/blog/2006/01/top-10-lies-of-entrepreneurs/#comment-1539 Courtney Benson Tue, 15 May 2007 13:02:06 +0000 http://deepdarksee.com/blog/?p=304#comment-1539 Based on what the NYT and Venturebeat's comments today, I'd say that not many VC's have paid as much attention to what Guy has noticed. "VCs have produced less profit than they invested, since 1997 — In other words, the industry is negative for the past decade. The vast majority of profits come from a few dozen firms. Other firms are bleeding red ink. See NYT story: For instance, in the first nine months of 2006, venture firms invested $20 billion but paid out $10 billion; in 2005, they invested $23 billion but distributed $20 billion… Diana H. Frazier, a managing partner of Flag Capital Management, a limited partnership, who mediated the limited partner presentation at the venture capital association meeting, estimated that from 1986 to 2002, only 32 firms accounted for 56 percent of money distributed. Ms. Frazier and other limited partners said the success for investors depended on being among the top-tier firms. “This is an access class, not an asset class,” she said". Based on what the NYT and Venturebeat’s comments today, I’d say that not many VC’s have paid as much attention to what Guy has noticed.
“VCs have produced less profit than they invested, since 1997 — In other words, the industry is negative for the past decade. The vast majority of profits come from a few dozen firms. Other firms are bleeding red ink. See NYT story: For instance, in the first nine months of 2006, venture firms invested $20 billion but paid out $10 billion; in 2005, they invested $23 billion but distributed $20 billion… Diana H. Frazier, a managing partner of Flag Capital Management, a limited partnership, who mediated the limited partner presentation at the venture capital association meeting, estimated that from 1986 to 2002, only 32 firms accounted for 56 percent of money distributed. Ms. Frazier and other limited partners said the success for investors depended on being among the top-tier firms. “This is an access class, not an asset class,” she said”.

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