Venture investing is frequently compared to baseball, as "exits" from venture funds can generally be categorized as "home runs" or "strike-outs." Our analysis of recent history supports this view, as the net return multiples experienced tend to cluster in a bi-modal distribution. Therefore it is most likely that an exiting company generates either a substantial, or a very poor, return for the venture investors.
We examine these outcomes separately, examining both "successful" and "unsuccessful" exits. This study utilizes data on outcomes for hundreds of venture-backed companies, compiled from sources which are deemed to be reliable.
To read the full, original article click on this link: Venture-Backed Companies: Recent Exit Trends
Author:
Dave Krimm
