Extract from article by Nino Marakovic and Steve Abbott published by TechCrunch
To move forward and avoid making bad decisions in these turbulent times, we all need to process the new reality, get on the same page and be realistic in our expectations for valuations and returns. Most VCs don’t actually generate 3x returns in their funds. But think of 3x as the math that keeps the machine humming from the investment side. Without it as an aspiration, we can’t raise new funds from our own limited partners to continue the cycle of investing in the next great class of enterprise technology entrepreneurs.
Of course the math has to work for enough entrepreneurs to keep showing up at the party as well. We think the new math still works, so let’s get back to business.