Re:Understanding VCs
by randomnames on Tuesday August 23, 2016 @12:32PM
(#12345018)
The point was, that with PE you are at a later stage of business (for startups usually pre IPO).
USV basically tries to do what MIT does with a fraction of the staff: Identify experiments worthwhile to pursue at earliest stages...judging by the quality of their "content marketing", I just doubt this ability. They are 1 generation VC with some lucky bets (prior to a market that matured) -- looking at their current portfolio, I wouldn´t be that bullish
$300M is not what PE does. PE can do anything from $500k to $10B+. PE also take a majority stake typically...it's a different beast.
> The reason they are still getting money is the image they are upholding together with their echoing fanbase.
The reason they are getting money is because their LP's are getting a return. Most of their LP's are pension funds. They continue to put money in USV because it returns them money. It's that simple.
> How many people are at USV, 8 maybe? By all science, they have no chance to be smarter than the (much more connected) market anymore.
12 if you include EA's. A PE fund I work with has 25 employees, $3B AUM and very profitable. What's your point?