The Top 10 VC Firms, According To InvestorRank by Erick Schonfeld

TL;DR - According to InvestorRank, the top 10 overall VC firms are: Andreessen Horowitz, Sequoia Capital, Accel, Benchmark Capital, Union Square Ventures, General Catalyst Partners, NEA, Kleiner Perkins, Khosla Ventures, and Grey Lock.

Helpfulness - 4 (written in 2011, so some of the information could be outdated, but the list doesn’t seem too inaccurate)

Tags - venture capital, VC, top VC firms, startup investing

Questions answered:

  • What is Investor Rank?
  • How does Investor Rank work?
  • What are the top 10 VC firms in the world?

Summary:

  • Past performance is not indicative of future returns.
  • Chris Farmer (a General Catalyst Partners VC) invented a method to rank VC firms, called Investor Rank, which looks at the connections between VC firms.
    • Whenever a VC firm follows another VC firm in a later round, the rank of the earlier VC goes up.
    • The more that a VC firm invests in syndicates with other highly ranked firms or before they do, the higher its InvestorRank.
    • InvestorRank is basically based on how connected and trusted a VC firm is
  • Based on InvestorRank, the top 10 overall VC firms are: Andreessen Horowitz, Sequoia Capital, Accel, Benchmark Capital, Union Square Ventures, General Catalyst Partners, NEA, Kleiner Perkins, Khosla Ventures, and Grey Lock.

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