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VC delusions of positivity

I am convinced the NVCA rallies its VC members to write stories about Venture Capital is “back to normal” and its “returns are going up”, after minus 4% IRR 10-year returns in Venture washed away all of its protectionist arguments, while corporate innovation blew VC performance away in the same period.

Is the big news item here that going up means VC performance doesn’t get worse than minus 4%, I would hope so too. VC performance is a disgrace to American innovation. Yet maybe, just maybe (watch the video) what it means is that the best practices of the NVCA in deploying innovation arbitrage over all these years are just not good enough.

As a Limited Partner I would not be betting on, but rather against those best practices as statistically and empirically that would yield better returns. Time to face reality boys!


About Georges van Hoegaerden

As a Silicon Valley entrepreneur having raised $14M in venture capital and having returned over $100M to investors I noticed a systemic flaw in the way we build systems. And so I gradually evolved my focus from the economics of innovation to the innovation of economics. I completely re-wrote the playbook of economics to serve us all and named it Renewable Economics™.

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