Marc Andreessen explains why venture capital is an “extreme feast or famine business” [Video]

“The venture capital business is 100% a game of outliers. It’s extreme exceptions. So the conventional statistics are that about 200 of the 4,000 venture-fundable companies per year will be funded by what’s considered a ‘top-tier VC’. About 15 of those will someday get to $100MM of revenue, and those 15 will generate something on the order of 97% of all of the returns for the entire category of venture capital in that year… Venture capital is such an extreme feast or famine business. You’re either in one of the 15 or you’re not.”

Video Source: @ycombinator https://www.youtube.com/watch?v=0JBOSmRo8js

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