Table: Sometimes A Great Crapshoot
The simplest trick of 1999 day traders was to buy IPOs backed by big-name venture capitalists. But how smart was that, especially if you weren't an insider who got the IPO price? Here's how some of the big VC boys and girls have done for investors on deals launched between Jan. 1, 1999, and June 30 this year. Almost all did just fine for themselves. no. avg. return of since 1st Firm deals trading day THE GOOD Bay Partners 6 169.7%* Lightspeed 13 127.8% Crosspoint Ventures 12 36.6% Kleiner Perkins 23 31.7% THE BAD MayField Fund 13 -14.8 Accel Partners 16 -27.2 CMGI@Ventures 5 -50.6 Sequoia Capital 23 -51.7 THE UGLY Softbank 17 -67.2 Vulcan Ventures 23 -73.3 Hummer Winblad 6 -88.1 idealab! 7 -90.6 * RETURNS ARE CAPITALIZATION-WEIGHTED, MEANING HIGHER-VALUED COMPANIES' RESULTS COUNT MORE HEAVILY DATA: VENTURE ECONOMICS/NATIONAL VENTURE CAPITAL ASSOCIATION; BASED ON TRADING THROUGH 11/8/2000
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