Liquidity tends to be of paramount importance when it comes to both entrepreneurs and venture capitalists making money. However, only a small subset of the startup universe will ever get to the acquisition or IPO stage. Today, I take a look at the exit rate of portfolio companies for a number of New York-based venture capital firms using some data from our friends at Crunchbase.
While examining the data, it is important to keep the following in mind as these factors do have an impact on the data:
- Exits are not always reported and portfolio investments are not always disclosed.
- Exits are not an accurate measure of portfolio returns and in no way should this data be construed to portray that.
- Only venture capital firms that are headquartered in NYC were considered.
- This data does not include angel nor accelerator investments.
- Only venture firms that have made 50+ investments were considered.
- The data does not take into account the stage preferences for the venture firms, the year of founding (although included), number of funds, the number of and size of investments in each startup. The data also does not account for the size of the exits.
- To maintain a focus on tech-enabled startups, energy and healthcare-focused venture funds were not considered. Growth capital and private equity firms are also excluded.
- Only venture firms that are active were considered; meaning that the venture firm has made at least one investment in 2016.
- The data is current of 10/10/16.