How To Truly Measure A Venture Capitalist’s Performance?

Wall Street Journal: Andreessen Horowitz’s Returns Trail Venture-Capital Elite TechCrunch: AngelList wants to improve comparing VC fund performance with new metrics and calculator New Yorker: Is Venture Capital Worth the Risk? Trying to make sense of these headlines? The topic of VC returns has been written at length and could yield dozens of doctorate theses. This post is a primer on why it’s difficult, how timing matters, and which metrics to use. A) Why Difficult — Getting to true VC performance is notoriously difficult because of three key factors: 1) Private Markets — Some VCs will retain their shares in…...