How Long Does it Take to Make Money in VC?
VC in 33 Seconds
In venture capital, patience is key. In this video, we break down how long it typically takes to see returns from venture investments. From early down rounds to big exits that can take years, we share insights on why this is a long-term asset class and what to expect when investing in a VC fund. Join us as we explore the journey from investment to potential payoff and why successful exits often come later in the process.
VC in 33: How Long Does it Take to Make Money in VC?
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Venture capital requires a long-term view. In this video, we explain the typical timeline for seeing returns, highlighting why early volatility is common and big wins often take years. Learn what to expect from the investment lifecycle in a VC fund — from initial challenges to eventual exits — and why patience can pay off.
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Chris Sklarin
Managing Partner, Castor VenturesChris has 30+ years of experience in venture capital, product development, and sales engineering. As an investor, he has deployed over $100 million into companies across all stages, from seed to growth/venture. At AV, Chris has built Castor Ventures from Fund 2 – 9 to over 150 portfolio companies. Prior to Castor, Chris was a Vice President at Edison Partners, where he focused on Enterprise 2.0 and mobile investments. Previously, Chris served as Director of Business Development at a biomedical venture accelerator and at an early-stage venture firm. Earlier in his investing career, as part of JumpStart, a nationally recognized venture development organization, Chris sourced and executed seed-stage investments. Chris received his SB in Electrical Engineering from MIT in 1988 and his MBA from the Haas School of Business at the University of California, Berkeley.
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FAQ
You can find the full transcript below:
Chris Sklarin:
It’s definitely a big cliché in venture capital, right? The lemon’s ripening early. Typically, the companies that aren’t going to work out, can’t find product markets fit, cannot figure out exactly what is driving the buyer of their product to get there and get to the big growth. They’re the ones that are going to run out of cash early and probably aren’t going to continue. The larger companies that do really well tend to take a little longer, and they’re going to take that 5, 7, 8, 9 years to get to the point of actually exiting. So, you kind of have to understand there’s a 10-year asset class. You’re coming into a fund, don’t expect to get those monies back quickly, but the big returns can come near the end of the fund, because that’s when those big exits typically come for the best performing companies.
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