25iq

My views on the market, tech, and everything else

The Matthew Effect and VC Performance

Andy Rachleff wrote recently: “Cambridge Associates, an advisor to institutions that invest in venture capital, says that only about 20 firms – or about 3 percent of the universe of venture capital firms – generate 95 percent of the industry’s returns, and the composition of the top 3 percent doesn’t change very much over time.” Anyone who has looked at Cambridge data over time can see that the distribution of […]

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MUPPETS ASK QUESTIONS AND EXPERTS ANSWER

What is a muppet? Henry Blodgett:  “The definition of “muppet,” say those who live on the other side of the pond (where ‘muppet’ is apparently a common term on trading floors to describe the guy on the other side of the trade) is “idiot.” Can a muppet become an investor? David Swensen:  “Instead of concentrating on the central issue of creating sensible long-term asset-allocation targets, [muppets]  too frequently focus on […]

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