These are the top venture capital firms of 2020
Venture capital is a type of private equity that primarily invests in start-up and small companies exhibiting long-term growth potential. They invest both in companies that have already shown impressive growth and companies showing high growth potential. Venture capital firms get funds from investors and usually put them in businesses that banks consider as too risky to lend money to. In this article, we will discuss the top Venture Capital Firms of 2020.
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Q3 2020 hedge fund letters, conferences and more
Top Venture Capital Firms of 2020
One of the best performance measures of the venture capital firms is the Investment to Exit Ratio. A ratio of 1 means a VC is making one investment for every exit, or no growth. A ratio of above one would mean the VC is the net acquirer of portfolio companies, or a growth scenario. So, the higher the ratio, the better it is.
The Voss Value Fund, LP added 14.5% in November, taking its year-to-date gain to 14.7% net of fees according to a copy of the firm’s latest investor tear sheet, which ValueWalk has been able to review. Q3 2020 hedge fund letters, conferences and more Since its inception, October 2011, the Value Fund has produced a Read More
We have ranked the Venture Capital Firms on the basis of Investment to Exit Ratio only. Following are the top Venture Capital Firms of 2020:
Khosla Ventures (13.58%)
Khosla Ventures, which is based in Menlo Park, CA, was founded in 2004 by Vinod Khosla, Co-Founder of Sun Microsystems. This VC firm has made about 700 investments, of which 96 have moved to the IPO stage. It primarily invests in China and the U.S. and mainly in the software industry. Even though the company focuses on one segment, it has been highly successful in its 16 years of existence so far. Some of their notable exits include Square, Okta and Big Switch Networks.
Sequoia Capital (20.71%)
Sequoia Capital was founded in 1972 and is based out of Menlo Park, CA. The company partners with companies in early- and late-growth stages across several industries. In recent times, it has been focusing on internet, mobile, healthcare, financial, energy and internet companies. They have made about 1,275 investments of which 365 were successful exits. Their success rate jumps to 63% when they are the lead investor. Some of its most notable exits are NVIDIA, Instagram, ServiceNow and more.
Accel, founded in 1983, operates in California, London, China and India. The VC firm primarily invests in consumer software, mobile technologies, enterprise software and internet. They have made about 1,350 investments of which 280 were successful exits. When they act as lead investor, their success rate jumps to 55.56%. Some of its most successful investments are Facebook, Crowdstrike and Animoca Brands. It mainly invests in early- and growth-stage companies, as well as some seed investments.
New Enterprise Associates (NEA) (20.96%)
NEA was founded in 1977, and is headquartered in Chevy Chase, Maryland. The VC also has offices in San Francisco, China, India, Baltimore, Boston and New York. NEA focuses on healthcare and technology, and invests from seed to IPO. They have made about 1600 investments, of which 333 were successful exits. Their success rate rises to 57.41% when working as the lead investor. Some of their notable exits are Uber, Workday, Onshape and more.
Kleiner Perkins (21.13%)
Kleiner Perkins was founded in 1972. Initially, the company invested mostly in software and hardware firms, but over time, it has grown its portfolio to include companies in the healthcare, mobile, internet, enterprise software and biotechnology industries. Also, it previously used to invest in late-stage growth companies, but now, it invests in early-stage startups as well. They have made over 1,100 investments, of which 240 went for IPO. Their success rate is about 79% when they act as the lead investor. Twitter, Uber, Peloton and Beyond Meat are some of their most notable exits.
Bessemer Venture (21.65%)
Bessemer Venture was established in 1974. It is a Silicon Valley based firm and has offices in Boston, India and Israel. They have made a total of 910 investments with 197 exits, while they have been lead investors on 34% of their total investments.
Initially, the VC firm focused on the steel industry, but now it is investing in the health industry and consumer and enterprise technologies. Some of the Bessemer’s most successful exits include Dynamic Yield (AI communication), Shopify and Twilio.
Intel Capital (28.5%)
Intel Capital was established in 1991, and it is a corporate venture capital arm of Intel Corporation. This VC firm primarily invests in the U.S., China and Western Europe. It focuses on tech firms in areas including Artificial intelligence (AI), 5G & Communications, Software security, IoT & Robotics, Next Gen Compute, and more. The company has made more than 1,300 investments and is the lead investor in 34% of them. When they act as the lead investor, their success rate jumps to 83%. Some if its exits are Animoca Brands, Schoology and MongoDB.