What are the world's best venture capital firms?

We build a basket of "top" VCs we'll use to represent "smart money"

Coming up with a list of the world’s best venture capital firms is not easy.

For one, the life of most funds is 10 years. And funds typically exhibit a J-curve where losing investments fail quickly, often in year two or three, whereas winners typically take seven to ten years to exit.

For the purposes of this newsletter, we’re looking for a basket of “top” VCs to represent “smart money” that we will use to evaluate investing trends in technology and the areas where value creation and change are likely to be greatest.

The typical metrics VCs are measured by include: distribution to paid in capital (DPI), total value to paid in capital (TVPI) and internal rate of return (IRR). Because these metrics vary by fund vintage, take a long time to be useful, are not published (though can be occasionally found in a pension fund limited partner’s annual report), and because we don’t need exact precision for our purposes, we will use the following mechanism to determine our “top” VC basket:

When we use the term “top VCs” in the newsletter, we are referring to the following basket of VC firms (in alphabetical order):

  1. Accel
  2. Andreesen Horowitz
  3. Battery Ventures
  4. Benchmark
  5. Bessemer
  6. DFJ
  7. Felicis Ventures
  8. First Round Capital
  9. Floodgate
  10. Foundation Capital
  11. Founders Fund
  12. General Catalyst
  13. GGV Capital
  14. Greylock
  15. Index Ventures
  16. Khosla Ventures
  17. Kleiner Perkins
  18. New Enterprise Associates (NEA)
  19. Norwest Ventures
  20. Redpoint
  21. Sequoia Capital
  22. Spark Capital
  23. Trinity Ventures
  24. Union Square Ventures

This newsletter is provided for informational purposes only, and should not be relied upon as legal, business, investment, or tax advice. You should consult your own advisers as to those matters. This newsletter may link to other websites and certain information contained herein has been obtained from third-party sources. While taken from sources believed to be reliable, Software Eats Money has not independently verified such information and makes no representations about the enduring accuracy of the information or its appropriateness for a given situation.

References to any companies, securities, or digital assets are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services.

Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Content in this newsletter speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.