Saturday, January 26, 2013

Most VC funds are no better than Russell 2000 index

The Kaufmann Foundation published an analysis of its VC investments. 65% of VC funds performed worse than their closest Public Market Equivalent (PME) - the Russell 2000 index (stock ticker - IWM)



The blind belief in the Risk vs Reward trade-off doesn't work. By taking more risks, foundations don't generate higher long-term returns.

tags: innovation, tradeoff, problem, startup, VC, economics

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