Just 14% of VCs have bagged a $1B exit
- Cromwell Schubarth
- Senior Technology Reporter- Silicon Valley Business Journal
- Email | Twitter | Google+
Only 45 companies have hit billion-dollar exits since 2004, according to CB Insights, and only 14 percent of active VC firms have funded them. An even smaller group - 3.5 percent — have backed more than one.
The report quotes a scathing blog by Andy Dunn of Bonobos, "Dear Dumb VC," in which he wrote, "How many companies are in your portfolio that have reached $1 billion in enterprise value? If the answer isn’t two, you are not good yet."
CB Insights included only companies that have been valued at $1 billion after an IPO or through an acquisition, a different approach than others have used recently that included billion-dollar funding valuations of startups. Until they hit the exit, you don't know how real those numbers will turn out, it argues.
The report didn't name all of the 68 firms that backed companies that made it to billion-dollar exits in the last 10 years, but CB Insights did single out three that have backed eight — Sequoia Capital, Greylock Partners and New Enterprise Associates.
The report didn't list all of the big exits for the big three unicorn hunters either, but Sequoia's Michael Moritz has had several big exits during the period of the study, including Google, LinkedIn and Zappos. LinkedIn co-founder Reid Hoffman backed Facebook and Zynga since joining Greylock. NEA co-invested in Workday with Greylock and was the big winner on Tableau this year, too.
Just focusing on who invested in $1 billion companies can be misleading, CB Insights pointed out, since those who don't get in on early rounds miss out on the really big returns.
Cromwell Schubarth is the Senior Technology Reporter at the Business Journal. His phone number is 408.299.1823.
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