Comments on: Accel Partners raises $1B in new money http://www.venturewoods.org/index.php/2008/12/13/accel-partners-raises-1b-in-new-money/ India's leading venture capital and startup blog Sun, 01 Aug 2010 03:20:48 +0000 http://wordpress.org/?v=2.3 By: Old Hand http://www.venturewoods.org/index.php/2008/12/13/accel-partners-raises-1b-in-new-money/#comment-294879 Old Hand Fri, 26 Dec 2008 14:04:23 +0000 http://www.venturewoods.org/index.php/2008/12/13/accel-partners-raises-1b-in-new-money/#comment-294879 Anyone who is thinking Venture Capital is going to sustain the next 5 years in its current shape is DREAMING. Accel got $1B probably because it was a top quartile return fund. For every Accel that raises money, 5-10 funds stand to be wiped out (the median return of such funds is 5% !!) Check out http://www.forbes.com/technology/forbes/2009/0112/066.html?partner=technology_newsletter Quote Joshua Lerner, a professor at Harvard Business School, recently analyzed returns, net of fees, for 1,252 U.S. venture funds going back to 1976. The median return for top-quartile firms was 28%. That included the huge profits of the tech boom, which aren’t likely to recur. The median return for all venture funds was just under 5%, or worse than what Treasury bonds would have given you. “If you’re not with the good guys, it’s not worth playing,” Lerner says. Anyone who is thinking Venture Capital is going to sustain the next 5 years in its current shape is DREAMING. Accel got $1B probably because it was a top quartile return fund. For every Accel that raises money, 5-10 funds stand to be wiped out (the median return of such funds is 5% !!)

Check out
http://www.forbes.com/technology/forbes/2009/0112/066.html?partner=technology_newsletter

Quote

Joshua Lerner, a professor at Harvard Business School, recently analyzed returns, net of fees, for 1,252 U.S. venture funds going back to 1976. The median return for top-quartile firms was 28%. That included the huge profits of the tech boom, which aren’t likely to recur. The median return for all venture funds was just under 5%, or worse than what Treasury bonds would have given you. “If you’re not with the good guys, it’s not worth playing,” Lerner says.

]]> By: Indus Khaitan http://www.venturewoods.org/index.php/2008/12/13/accel-partners-raises-1b-in-new-money/#comment-291271 Indus Khaitan Sun, 14 Dec 2008 05:49:08 +0000 http://www.venturewoods.org/index.php/2008/12/13/accel-partners-raises-1b-in-new-money/#comment-291271 I would speculate that a good chunk of this "late stage" money ($100m+) may go to FaceBook. Accel is an early investor in FaceBook and the FaceBook CFO is rumoured to be doing global rounds (China, Dubai, etc.) for their next round of funding ($300m+). I would speculate that a good chunk of this “late stage” money ($100m+) may go to FaceBook. Accel is an early investor in FaceBook and the FaceBook CFO is rumoured to be doing global rounds (China, Dubai, etc.) for their next round of funding ($300m+).

]]>