a16z VC Marc Andreessen On Tech Valuations and More (podcast)

Marc Andreessen Answers the Tech Valuation Question | Bloomberg.com: "many investors don't grasp what's changed ..."

“We make our money on the ones that work and our reputations on the ones that don’t.”

Stock returns tend to be driven by a handful of big winners; for venture investors, it’s even more lopsided. Venture-capital funds typically have a 50 percent failure rate -- half of the investments lose money, with half of those being total losses. The third quartile breaks even, or returns two or three times their money over five to 10 years. The real action is in their top quartile, which can generate return on investments of anywhere from three- to 1,000-fold.

See also:

• Tech Valuations: Nothing Like the 1990s... | ritholtz.com

• 10 Federal Agencies You Might Not Have Heard of, But That Matter for Tech – Andreessen Horowitz | a16z.com

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