Last week, we recapped some of the more recent literature on the performance of private equity, and venture capital (VC) in particular. The cumulative body of evidence, we found, was damning with regard to venture capital’s ability to provide better returns than comparable—and less risky—publicly traded equities.
We left off with a review of a study by Michael Ewens and Matthew Rhodes-Kropf, “Is a VC Partnership Greater Than the Sum of Its Partners?” The paper, which appears in the June 2015 issue of The Journal of Finance, seems to offer some hope, although not for the VC industry as a whole.
Read the rest of the article on ETF.com.