{"id":4517,"date":"2012-05-08T20:18:08","date_gmt":"2012-05-09T02:18:08","guid":{"rendered":"http:\/\/www.zmetro.com\/?p=4517"},"modified":"2012-05-08T20:18:08","modified_gmt":"2012-05-09T02:18:08","slug":"lessons-from-twenty-years-of-the-kauffman-foundation%e2%80%99s-investments-in-venture-capital-funds-and-the-triumph-of-hope-over-experience","status":"publish","type":"post","link":"https:\/\/www.zmetro.com\/?p=4517","title":{"rendered":"Lessons from Twenty Years of the Kauffman Foundation\u2019s Investments in Venture Capital Funds and The Triumph of Hope over Experience"},"content":{"rendered":"<p><a href=\"http:\/\/www.kauffman.org\/uploadedFiles\/vc-enemy-is-us-report.pdf\">The Kauffman Foundation:<\/a><\/p>\n<blockquote><p><i>Venture capital (VC) has delivered poor returns for more than a decade. VC returns  haven\u2019t significantly outperformed the public market since the late 1990s, and, since 1997, less cash has been returned to investors than has been invested in VC.  Speculation among industry insiders is that the VC model is broken, despite occasional  high-profile successes like Groupon, Zynga, LinkedIn, and Facebook in recent years. <Br><Br><\/p>\n<p>The Kauffman Foundation investment team analyzed our twenty-year history of venture investing experience in nearly 100 VC funds with some of the most notable and  exclusive partnership \u201cbrands\u201d and concluded that the Limited Partner (LP) investment  model is broken 1 Limited Partners\u2014foundations, endowments, and state pension  fund\u2014invest too much capital in underperforming venture capital funds on frequently mis-aligned terms. Our research suggests that investors like us succumb time and  again to narrative fallacies, a well-studied behavioral finance bias. We found in our own portfolio that:<\/i><\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>The Kauffman Foundation: Venture capital (VC) has delivered poor returns for more than a decade. VC returns haven\u2019t significantly outperformed the public market since the late 1990s, and, since 1997, less cash has been returned to investors than has been invested in VC. Speculation among industry insiders is that the VC model is broken, despite [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/www.zmetro.com\/index.php?rest_route=\/wp\/v2\/posts\/4517"}],"collection":[{"href":"https:\/\/www.zmetro.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.zmetro.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.zmetro.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.zmetro.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4517"}],"version-history":[{"count":1,"href":"https:\/\/www.zmetro.com\/index.php?rest_route=\/wp\/v2\/posts\/4517\/revisions"}],"predecessor-version":[{"id":4518,"href":"https:\/\/www.zmetro.com\/index.php?rest_route=\/wp\/v2\/posts\/4517\/revisions\/4518"}],"wp:attachment":[{"href":"https:\/\/www.zmetro.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4517"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.zmetro.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4517"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.zmetro.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4517"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}