%0 Journal Article %A David Teten %A Adham AbdelFattah %A Koen Bremer %A Gyorgy Buslig %T The Lower-Risk Startup: How Venture
Capitalists Increase the Odds of Startup Success %D 2013 %R 10.3905/jpe.2013.16.2.007 %J The Journal of Private Equity %P 7-19 %V 16 %N 2 %X The authors recently completed the first-ever study of how venture capitalists systematically help their portfolio companies grow. They found that certain VCs are aggressively building out a focused portfolio operations skillset and recruiting more people with operational backgrounds. Based on a range of sources, the authors believe that most funds with well-developed “portfolio operator” models have top-quartile returns (above 20% internal rate of return in the relevant time periods). The authors detail the resources that operationally focused VCs have to leverage and how exactly they assist their portfolio companies.TOPICS: Private equity, manager selection, quantitative methods, performance measurement %U https://jpe.pm-research.com/content/iijpriveq/16/2/7.full.pdf