VC Portfolio Modeling: Determining Portfolio & Investment Size

VC Portfolio Modeling: Determining Portfolio & Investment Size

@davemcclure

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1 week ago 80

Tech #startups #investing #venturecapital

VC Portfolio Modeling: Determining Portfolio & Investment Size

@davemcclure1 week ago

Title: Determining VC Fund Porfolio and Investment Size, Reserves and Follow-on Investing
Abstract…

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Concentrated or Diversified Portfolios?
Ok, so let’s start with portfolio size first: how many com…

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Ok, now let’s take a look at a portfolio that’s a little more lucky and does have 1 big unicorn. In…

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The Relative Cost of Buying Good Equity = (Average Valuation per round) x (Success / Filter Rate to…

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Again it’s not easy to come up with simple one-size-fits-all answers to each of these scenarios. It…

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@davemcclure

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Here is article I wrote in 2022 on how to structure VC portfolio model re: # of co's, check size, follow-on, and reserves.

VC Portfolio Modeling: Determining Portfolio & Investment Size

@davemcclure

This article provides insights for VCs on how to effectively size their venture capital funds, determine the optimal number of companies in their portfolio, and strategize about follow-on investments. It discusses the challenge of achieving a 3X return and factors influencing portfolio performance, including ownership stakes, diversified vs. concentrated investments, and the timing of additional funding.

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#startups #investing #venturecapital

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