Finding the Fifteen

“In the venture capital business, 15 companies a year still deliver 97 percent of returns. The key to success is still finding those 15.” - Ben Horowitz

Marc Andreessen, founder of Netscape, has started a technology VC fund together with Ben Horowitz. The firm, Andreessen Horowitz, will raise sums as small as $50K to wager on small tech businesses. The NY has reported the firm has raised a pool of $300m. Businesses that show promise will then be eligible for a second round of funding to enable them to grow globally. This is a really exciting idea; certainly there will be a lot of failures, but at least the cost of failure is kept controlled. Marc's gameplan is to look for companies "like Facebook", of which he is a director. FB started with $500K but since raised $600m to grow.