I’m excited to report that we’ve started to release the results from our first-ever study on best practices in private equity and venture capital deal origination. My coauthor Chris Farmer (formerly Vice President, Bessemer Venture Partners) and I published a summary in the current issue of Harvard Business Review.
Evalueserve, a global research firm and the acquirer of my former company (Circle of Experts), provided supporting research and analytics in the initial phases of this study. We also thank Yujin Chung and Neha Kumar (Wharton 2010), research associates who provided invaluable support, and interns Corentin Roux dit Buisson, Dan Clark, Nitin Gupta, and Nikhil Iyer .
A highlight from the HBR article:
We’ve found that late-stage tech investors with geographically diverse portfolios are consistently among the best performers and have continued to attract large limited partner commitments, even during the challenging period since 2007. Almost all such players have been able to raise at least as much cash as they could previously. By contrast, the funds with traditional origination programs, focused on local networks, have had difficulty; most haven’t raised new capital since late 2005.
For more data from the study, see the slides below: