Updated
Updated · Financial Times · Jun 25
Study Ranks Top 100 US VC Firms From 230,000 Investments, Finding 90% of Profits Go to 5%
Updated
Updated · Financial Times · Jun 25

Study Ranks Top 100 US VC Firms From 230,000 Investments, Finding 90% of Profits Go to 5%

1 articles · Updated · Financial Times · Jun 25

Summary

  • A new Strebulaev-Jackson ranking of 100 US venture capital firms draws on 230,000 investments made by nearly 13,000 VCs over 30 years, offering a rare performance map of an opaque industry.
  • The study finds venture capital returns are extremely concentrated: about 90% of industry profits come from just 5% of firms, extending the sector’s power-law dynamic from start-ups to the investors themselves.
  • Sequoia Capital, Andreessen Horowitz, Accel, DST Global and Tiger Global top the list, and 62 of the 100 firms are based in California.
  • The authors note access remains a hurdle for institutional investors outside elite funds, while firm-level rankings can mask big differences between individual funds and shifting strategies toward larger late-stage bets.
  • That shift could reshape future standings as SpaceX, valued at $1.78tn, and other giant VC-backed companies such as OpenAI and Anthropic move closer to potential listings.

Insights

As VCs chase massive AI deals, what overlooked industries will spawn the next wave of billion-dollar companies?
With 90% of profits controlled by 5% of VCs, is the venture capital dream now closed for most new startups?
Is bizarre VC behavior a bug in the system or a calculated test to find the most resilient founders?