Do mega funds return capital?
This Week's Briefing
Does the UK need a growth fund?
Capital exists at the earliest stages, but if those companies can't graduate into follow-on rounds, the ecosystem doesn't develop, no matter how good the seed stage looks.
Sand Hill Road will always fund the top 5%. Everyone else needs somewhere to go.
What would actually move the needle here?
Listen or watch the episode below:
Key Takeaways
- Three layers, three separate bets
- Across 759 companies, five did a third of the work
- Only 8 of the underlying funds actually returned their own capital from one company alone
The Bigger Picture
- Then you have to have picked the right fund in the first place
- This was also the best decade venture has ever had
Why it matters
“The power law doesn't get easier when you add a layer. It compounds.”