TechVest Venture Acceleration

... since 1987

Past ROI Stair Step Red

How We Did

Hentschel VC Track Stats 3

The above analysis of venture investments in the 1980’s is approximate. These investments were coordinated or managed by Michael Hentschel, usually with a Board of Directors role. Calculations of this type result in a conclusion that demonstrates a 27% average IRR internal rate of return over ten years for his specific investments, and higher over shorter periods of analysis. Mr. Hentschel was not always in charge of when each investment was ultimately disposed (the Stratacom-Cisco acquisition taking 10 years)’ and VC Funds often sell their positions in IPO’s rather than waiting, seldom carrying publicly traded equity positions until a company gets sold. In those cases where a timed disposition was known, the resulting rate of return was calculated from that result. In the 1980’s many venture funds returned more than 15% per annum, but 27% or more was unusual. Larger samples, for instance whole portfolios of large teams of VC’s, were generally much lower. The best long-term performer of the time, one of the best eras ever for investment in CA technologies, was Kleiner Perkins, with average returns over 35%. The above illustrates the typical portfolio management issues for venture and angel investors.