Venture Capital's Software Batting Average

 
Analytics; Venture Capital
October 08, 2010 Posted by:
Posted by Gregg Oldring, October 13, 2010 at 5:28 PM
"While I'm pleasantly surprised that VCs have made money on software, I still remain skeptical that the companies they have funded have become profitable businesses. How do the VC funded businesses measure up in terms of profitability?"
Posted by Mark Gallagher, October 15, 2010 at 3:18 PM
"Gregg,
Thanks for your comments. Our data set and analysis is focused on the dollars of equity invested in thousands of companies over a 16+ year period and the exits acieved by those companies. The data does not have direct information of the respective profitabiity of the companies themselves. That would certainly be an interesting study. Thanks for your comments. Mark"
Posted by Todd Gardner, January 14, 2011 at 10:11 AM
"Thanks Mark, I'm a huge fan of software and particularly SaaS businesses. I believe, however, your analysis may have missed the "strike-outs" if you want to keep with the baseball analysis. Does Venture Source tracks the companies that simply go out of business? There were a significant number of those especially in 2000 to 2004."

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Mark Gallagher
Mark Gallagher
Senior Market Manager
Silicon Valley Bank
Location: Newton, MA
Phone: 617 630 4180
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