Monday, July 6, 2009

Marc Andresson launches a new venture fund !

Some interesting points he made (not sure how accurate they are but I'll mention them anyway)

1. Only 10-20 of 700 funds he knows deliver good returns

2. There are exits, just not enough: Data Domain : likely to sell for $2 billion, Pure Digital - Cisco; OpenTable IPO and LogMeIn filed for IPO recently

3. 15 tech companies launched per year can get to $100 million in revenues. They're responsible for 97% of VC returns

His model will be the Valley model. Give a small company money for up to 5 engineers. If they build a good product, give them $5-10 million. He will only invest in the Valley. He will only do tech/internet/infrastructure in the spaces he knows.

Marc founded Netscape, Ning and Opsware (earlier known as LoudCloud). He is a well known Valley angel investor with several bets that seem to be working (Twitter, Digg, Delicious). He has a great blog but I haven't visited it in a while after he stopped writing. He's also an enormously insightful panelist.

No comments: