Lots of venture capitalists claim to add value to the companies in which they invest. But how do they do it? And does it really produce better returns for their investors? We recently wrapped up a study on best practices of venture capitalists in creating portfolio company value through operational support, exploring exactly these questions.
We found that certain VCs are aggressively building out a focused portfolio operations skill set and recruiting more people with operational backgrounds. Based on a range of sources, we believe that most funds with well-developed portfolio operator models have top-quartile returns (typically above 20 percent IRR in the relevant time periods).
To read the original article: Strategies For VCs To Increase Startup Success Odds | TechCrunch
