Back

Vrishank Raj

VC enthu • 10m

Pareto Principal or the 80/20 rule in the world of Venture Capital 👇 For those aware who are not aware of this 80/20 rule, it states that 80 percent of the returns will be generated by 20 percent of the companies in the portfolio. This is a pretty standard result in the VC industry where most of the returns are generated by only a few investments. Let's see the application of this principle on an Indian VC firm, known as "Blume Ventures". 👇 - For Blume Fund 1, the top 20 percent of the companies in their portfolio generated 98 percent of their total returns 🤯 - The total fund size was Rs.114 crore, their portfolio company GreyOrange alone returned them Rs.170 crore 🫡 - The top 20 percent companies in their portfolio generated them an avg of 16.5x return - 50 percent of the companies in their portfolio made them no return. This is why VC is often called the most high risk, high reward industry. The chances of your portfolio company failing is always high.

7 replies44 likes
11
Replies (7)

More like this

Recommendations from Medial

Image Description

Shuvodip Ray

 • 

YouTube • 11m

99 percent of this song was generated by AI

1 replies1 like

Sanket Bhosale

Post on Writing & Pe... • 8m

Your problems aren’t the actual ones. - 80% of your problems are self-inflicted. - 80% of your income comes from 20% of your clients. - 80% of your results come from 20% of your time. Focus on 20%, growth will be exponential.

0 replies7 likes

Chamarti Sreekar

Passionate about Pos... • 4m

Dropbox lays off 20% of its workforce https://gadgetbond.com/dropbox-layoffs-20-percent/

0 replies4 likes

Ranadheer Pitla

Never ever give up • 13d

CRYPTO NEWS : A total of 80 public companies have now added Bitcoin to their holdings.

0 replies4 likes
Image Description

Adithya Pappala

Launching India's Fi... • 3m

#9TDAYVC-DAY-15 What are Additional Returns? What is the Catch-Up Clause? In Developed Markets, The structure is in 2-20% where 2 is Management Fees & 20 is Additional Returns.Additional Returns & 2-20 structure is not ideal in Indian AIF Market

See More
1 replies1 like
Image Description

Adithya Pappala

Launching India's Fi... • 3m

#9TDAYVC- DAY-14 🎯What is Hurdle Rate? 🎯What is Carry Fees? 🎯The preferred returns are also called as “Hurdle Rate” in VC & P.E Funds. It is the threshold return that LP’S should receive prior GP’S receive. In developed markets, The hurdle

See More
1 replies1 like
Image Description

VCGuy

Believe me, it’s not... • 1m

'What are the different roles in Venture Capital?' is a question commonly asked. VC Firms are structured very differently. Each role works → to source deals, evaluate investments and support portfolio companies. Mapped out the structure of a VC

See More
1 replies24 likes
4
Image Description

Milan Sinha

Life’s a buffet, and... • 11d

Pareto’s Rule: A Startup Conspiracy? They say 80% of results come from just 20% of efforts. Sounds like productivity wisdom… or maybe a cheat code we’ve all been ignoring? Think about it: 80% of your revenue → from 20% of your customers. 80% of yo

See More
3 replies10 likes
Anonymous
Image Description
Image Description

AMA - I am a VC with 4+ years of experience. Have invested from Pre-seed to Series A. Focus sectors are : Consumer Tech, FinTech, SaaS. Portfolio of 25+ companies. Happy to answer any questions the community might have.

28 replies51 likes

anant

Nothing • 9m

Indian cricket team returns to their homeland after winning the world cup in westindies.in final they defeated southafrica by 7 runs to clinch their second t 20 wc

0 replies3 likes

Download the medial app to read full posts, comements and news.