1on1 on VC -math

As the return expectation is 3x, a 100 M€ fund will aim to return 300 M€ to it´s investors. Since a typical ownership at the time of the exit for such fund is let´s say around 20%, the total exit value of the portfolio would have be 1,5 bn €. Let´s assume 5/20 investments in the fund are returning the money, the average exit must then be 300 M€. That is much larger than the median exit of 61 M$ in 2017. So in practise they need at least one unicorn exit. Should the fund size be 1 bn€, the math becomes even more challenging.

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