The Wall Street Journal published an article shining a light on Andreessen Horowitz, the vaunted VC firm that seemingly came out of nowhere in 2009 to become one of the most prestigious venture firms in Silicon Valley. The article indicates that a few of a16z’s funds are not performing as well as their age-matched peers.
Basically, one evaluates venture fund performance by comparing a fund raised in a certain year to the set of other funds raised in that same year. Much like wine enthusiasts, investors in venture funds use the term “vintage” as a way to talk about the relative performance of funds. Continue reading “How to Compare Venture Returns & The Curious Case of a16z”