Independent on the VC funds they work for individual venture capitalists are successful at generating returns. Individual VCs are roughly five times more powerful as leading indicators of success than the firms for which they work, reports PE Hub, citing the results of new academic research. The study provides quantitative evidence that individual VCs are more important than the GP firms they work at.
It says that LPs have often feared the departure of a particular venture partner from an investment company because they believe his or her performance was due to the firm organizational capital. The results of the study suggest that there is no reason to fear the talent’s departure. The study concludes that successful venture partners will be relatively unaffected by movement and in turn, individual venture partner past performance is a good predictor of future performance.