This article was first published on November 20, 2017, then revised and updated October 9, 2019
Vinod Khosla, the tech venture capitalist, has said 95 percent of VCs add zero value to a startup other than cash. About four out of every five VCs, he said, actually damage their own investments with bad advice.
When asked to apply the Khosla test to biotech, Bruce Booth of Atlas Venture estimated “20 percent or so are truly value-add.”
So who are some of these people who don’t shoot their own investments in the feet? Like Forbes and its Midas List, I don’t have an objective formula for evaluating individual VCs (Whole firms are opaque, but easier).
But after checking with subscribers of Timmerman Report, I’ve gathered some perspective on who are the ones who quietly go about their business, and do it quite well.
This article is a preview for the Biotech Showcase, Jan. 13-15 in San Francisco. I look forward to seeing lots of Timmerman Report subscribers there. I’ll be giving a presentation on the Climb to Fight Cancer at Fred Hutch. Stay tuned for details.