Many investors wonder how top US tech funds manage to consistently deliver outsized returns over extended periods of time. So how do these fund managers achieve such strong results?
Venture capital IRRs by vintage 2008-2017 top tier (decile) vs. median
Top US tech funds invest predominantly in companies in the rapidly growing technology sector, which captures an increasing share of the global economy.
The US start-up clusters in California and on the East Coast dominate global technology innovation as shown by the number of unicorns created. Their early backers have an unparalleled opportunity to create outsized returns.
Top US tech funds create preferred access to the best opportunities.
Top US tech funds take a long-term view and invest with high success across market cycles.
Looking at the global software market, it has grown dramatically over the past decades and is expected to exceed $500 billion by 2021. It is expected to cross $1T in revenues by 2030, creating significant opportunities.3
Largest public companies by market cap
Number of current unicorns in which the firm is featured as a Select Investor on CB Insights