Nice little article in HBR that tries to shatter the usual VC myths with a strong dose of data. Some titbits:
- Less than 1% of companies in the US raise capital from VCs
- VCs are not risk takers. In most VC funds, the partners’ own money accounts for just 1% of the total
- VC funds haven’t significantly outperformed the public markets since the 1990s
What makes this even more compelling is that the author is a former (recovering?) VC herself. Should be a must read for all entrepreneurs. Let me know if you need the article.