Limited Partner Returns Model

Adequate Limited Partner returns require VCs to find Grand Slam company exits.

With varying standards, parameters, and overlapping funds, it is very difficult to create an accurate picture of the returns that Limited Partners receive from Venture Capital Fund investments.  Using a very simple model, it is easy to show that VC firms need to find companies that deliver “out of the ballpark,” Grand Slam home run exits to offset the zero or very low returns they receive from other investments.  It is truly a game of outliers.