Roughly one-half of all true IPOs are VC-backed even though fewer than one quarter of 1% of companies receive venture financing
Over 30% of investments are generated through professional networks. Another 20% are referred by other investors and 8% from a portfolio company. Almost 30% are proactively self-generated. Only 10% come inbound from company management.
The median firm closes about 4 deals per year. For each deal in which a VC firm eventually invests or closes, the firm considers roughly 151+ potential opportunities
The average required IRR is 31%. Late-stage and larger VCs require lower IRRs of 28% to 29% while smaller and early-stage VCs have higher IRR requirements. The same pattern holds in cash-on-cash multiples, with an average multiple of 5.5 and a median of 5 required on average, with higher multiples for early-stage and small funds
The average VC firm in our survey employs 14 people, 5 of whom are senior partners in decision-making positions.
VC’s report working an average of 55 hours per week.
VC firms spend the single largest amount of time working with their portfolio companies, 18 hours a week.
Consistent with the importance of sourcing and selecting potential deals, sourcing is the second most important activity, at 15 hours per week.
Networking is the fourth most important at 7 hours per week
Venture Intelligence is India’s longest serving provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India.
