Re:How VC Works – A Beginner's Guide
by xmot7 on Tuesday May 26, 2020 @10:04AM
(#23311227)
It's a very aspirational target. 25% annualized return (after fees) is a top decile fund. I've heard that number as a target before, but rarely and from investors that weren't used to the market. 12-15% from public markets is a top quartile hedge fund, still a great return but a little less aggressive than the VC number.
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Under this definition, it would seem as if Andreesen Horowitz is not anywhere close to a top decile fund[1]. Does anyone know which ones are? Data on VC returns seems hard to come by.
[1] https://www.theinformation.com/articles/andreessen-horowitz-...
For industry wide statistics, something like https://www.cambridgeassociates.com/wp-content/uploads/2018/... is pretty good. All returns there are gross, not net, but they show top quartile funds returning 15-20% gross over the last decade, varying a bit year to year.
For specific fund performance, I don't know of anything public. Most of the big names have had some funds with >20% returns, usually as they get bigger those get harder to maintain.