PT  - JOURNAL ARTICLE
AU  - David J. BenDaniel
AU  - Jesse E. Reyes
AU  - Michael R. D'Angelo
TI  - Concentration in the Venture Capital Industry
AID  - 10.3905/jpe.2000.319966
DP  - 2000 Aug 31
TA  - The Journal of Private Equity
PG  - 7--13
VI  - 3
IP  - 3
4099  - https://pm-research.com/content/3/3/7.short
4100  - https://pm-research.com/content/3/3/7.full
AB  - This article examines historical data characterizing the U.S. venture capital industry from 1961 to the present. It shows that concentration has existed in the industry for at least a decade, and this concentration continues to grow and become more pronounced. Capital is raised by an elite few of the venture capital firms currently in operation. This group of very large venture capital firms has consistently shown an IRR exceeding that of the rest of the industry. In general, these larger firms tend to focus on later stage deals. In what might be characterized as a disequilibrium, venture capital IRRs in later stage deals have been higher than those captured by early stage deals. Factors maintaining this disequilibrium are discussed along with the potential industry implications associated with concentration.