Entrepreneurs earned an average of $9 million from each company that succeeded in attracting venture funding....
Venture capitalists received an average of $5 million in fee revenue from each company they backed. The outside investors in venture capital received a financial return substantially above that of publicly traded companies, but that the excess is mostly a reward for bearing risk.
Wednesday, October 24, 2007
Returns to venture capital
In a working paper, Susan Woodward and Bob Hall track the division of value for a sample of U.S. venture-funded companies from 1987 through 2005.
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