Dear SaaStr: How are Funds Invested by Venture Capital Firms?
SaaStr
AUGUST 27, 2023
Dear SaaStr: How are Funds Invested by Venture Capital Firms? It varies of course, but roughly for bigger funds: Funds tend to invest in 20–40 startups over 2–4 years. Big and tiny funds may do more, but in general, this is the sweet spot. Funds use about 40% of their fund for initial, first checks They earmark another 40% for follow-on checks into later rounds in those investments over the next 2–10 years And 20% of the fund is used for fees and expenses, at least initially So a $200m VC fund m
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