Source - https://www.forbes.com/sites/alexkonrad/2015/03/25/benchmark-makes-other-firms-look-outmatched/#482a5a6c4006
TL;DR - Benchmark Capital, one of the top VC firms in the world, has a very egalitarian and lean organisational structure unlike many other VC firms.
Helpfulness - 4
Tags - Benchmark Capital, venture capital, VC, top VC firm, startup investing
Questions answered:
- What are some things that differentiate Benchmark Capital from other VC firms?
- What is the organisational structure of Benchmark Capital like?
- How well has Benchmark Capital performed?
- How do the partners at Benchmark Capital operate?
Summary:
- Each partner at Benchmark Capital is given an equal voice; there are no junior or senior partners, only partners, and no one plays a CEO-like role and the firm’s winnings are divided equally.
- Benchmark is decidedly minimalist; there’s only a small staff to support the partners.
- Has performed extremely well.
- Examples of its successful investments: Dropbox, eBay, Instagram, Yelp, Zillow, Twitter, Snap, Uber
- Over the past decade, its eight funds have paid out $22.6 billion to investors; its backers received an approximately 1000% - which beats out most billion-dollar funds raised larger firms
- Its small size forced Benchmark to be “scrappy, hungry, and fast”.
- Benchmark focuses on a company’s first or second institutional rounds of funding and likes to take the biggest stake of any outside investor and a board seat (to include the direction of its portfolio companies)
- For competitive deals, its partners often operate as a pack; each has a different role and brings his own experience to the partnership .
- It has avoided the generational struggles that have hobbled many firms; all the founding partners made way for fresh, new talents.
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