378 Stale VCs? VC should give back too

Georges van Hoegaerden
Georges van Hoegaerdenhttps://www.methodeva.com/georges/
Founder, Author, and Managing Director of methodEVA.
  • According to The Funded, 378 Venture Capital investment firms have not made any recent investments. That would mean roughly 1/3rd of all VC firms since the beginning of 2000 have seized to invest, possibly because they have not raised a new fund. And that means the collective investment from these firms into startups has received improper innovation arbitrage, as it has not produced cumulative returns to build the commitment for a new fund. As an entrepreneur please verify your prospective investor is not on this list, to avoid being tagged as a false negative (by a negative). Expect this list to grow some more, so bookmark the source page.
  • Oaktree Capital Management hands $3B of its distressed fund back to its Limited Partners, asking them to re-up for a renewed strategy to better match new economies. We applaud their integrity. Venture Capital investors should do the same, given minus 4.6% average returns and give all the unallocated moneys back to LPs. With fewer than 35 VCs making any consistent money for LPs, I bet fewer than 5% of current VCs will be able to raise a new fund with a new, modern investment strategy. Because they just don’t know.


The sign of an intelligent nation is its willingness and ability to reinvent itself, upstream. Let’s inspire the world with new rigors of excellence we first and successfully apply to ourselves.

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