VCs invest in businesses that have the potential to go big and at the
same time, given them a handsome RoI within a few years (maybe a short
cycle?). VCs judgment (of understanding a business, from a typical
MBAish perspective) has been questioned umpteen number of times and here
are a few stark realities from the VC investments (happened in US,
2001-2009 period) that speaks of the model:
- # of VC-backed companies started: 24,100
- # of VC-backed companies with exits over $100m: 750 (3%)
- # of VC firms: ~850 [source]
To read the full, original article click on this link: “Tourist VCs Go Home”–Stats from VC Industry
Author: sinha
