Why Only a Handful of Venture Capital Firms Will WIn
Aram Verdian, partner at Accolade Partners, discusses his thesis that venture capital is becoming a winner-take-all market, with less than 1% of firms consistently generating top returns. He explores the reasons for this concentration, including the dispersion of company exits and the challenges of fund size, and delves into the critical role of 'right to win' strategies and strong portfolio construction for venture firms. The conversation also covers the evolving dynamics of LP-GP relationships, the increasing tendency for companies to stay private longer, and the disruptive impact of AI on the venture landscape.
- Accolade Partners' core portfolio construction principle demands that a single company outcome be capable of returning multiples of the fund, even after dilution. Read →
- Seed-stage venture capital has become a winner-take-all environment, with Accolade Partners' Aram Verdian noting that less than 1% of firms consistently deliver top returns due to intense competition and dispersed exit outcomes. Read →
- Accolade Partners, led by Aram Verdian, aims to be the "first call" LP by embedding itself deeply with venture fund managers from their inception, assisting with operational setup, strategy, and even co-drafting their Limited Partnership Agreements. Read →
- The average unicorn now stays private for over 12 years in the US, a direct result of abundant private capital and secondary markets offering employee liquidity without a public IPO. Read →