Monday 15th July 2019

    A Deep Dive into What Has Really Changed in Venture Capital


    If you look at some high-profile tech companies funded in the last big VC cycle you had eBay, Amazon, Salesforce & Google each go public having raised < $100 million in VC TOTAL prior to IPO and their last private-market valuation were all sub $400 million.
    If you fast forward one generation of tech companies it’s a completely different story. Companies are raising billions of dollars in the private markets and the valuations are enormous PRIOR to the IPO. Yes, distributions to LPs have been pushed out a few years but the value capture in privates by the best VC firms (and best LPs) has been enormous.
    In fact, if just Google, Salesforce and Amazon had stayed private for 12 years (today's IPO benchmark) an addition $200 billion would have been captured in the private markets! This is cutting it as just 12 years after inception, which is even before Amazon and Google's big stock-market runs in which these three companies have created $1.64 trillion in value.

    Continued here