Key Takeaways
- • Nicole DeTommaso said that in the current venture capital environment, a startup can triple its revenue over a year and still be viewed as a disappointment, according to Traders Union.
- • DeTommaso cited this as an example of how venture capital can make extraordinary outcomes feel ordinary at present.
- • Her broader commentary points to investor tendencies to promote portfolios and to the reliance of VC returns on rare, high-impact bets, with most investments expected to underperform.
- • Publisher-context commentary attributed to DeTommaso notes that smaller fund investors have become more risk-averse, and that mega funds are increasingly dominating the sector.
Summary
Nicole DeTommaso said that, in the current venture capital environment, a startup can achieve three times revenue growth over a year and still be regarded as a disappointment, according to a Traders Union report. She described this as an example of how venture capital can make extraordinary outcomes feel ordinary, particularly at this time.
The article places her remarks in the context of earlier comments in which she argued that investors and venture capitalists often promote their portfolios, sometimes presenting them as stronger than they are in reality. She has also explained that much of venture capital's success comes from rare, high-impact bets, with many investments expected to underperform. Taken together, these observations frame her view that growth expectations in the sector have risen to a level where strong top-line gains may be judged insufficient.
Related material from DeTommaso's own publications and commentary, which the publisher's context surfaces, adds further color. In one post she argued that smaller fund investors are more risk-averse than ever, with limited partners exerting pressure on them, and that once a strong team is in place, outcomes depend on other factors. Another piece in the publisher's context states that mega funds are increasingly dominating most venture capital firms, with leading firms attracting the bulk of capital.
The Traders Union piece itself is brief and largely summarizes DeTommaso's remarks rather than presenting new financial data, such as specific companies, deal values or fund figures. The article notes that it may contain third-party opinions and that its content does not constitute investment advice.
The article places her remarks in the context of earlier comments in which she argued that investors and venture capitalists often promote their portfolios, sometimes presenting them as stronger than they are in reality. She has also explained that much of venture capital's success comes from rare, high-impact bets, with many investments expected to underperform. Taken together, these observations frame her view that growth expectations in the sector have risen to a level where strong top-line gains may be judged insufficient.
Related material from DeTommaso's own publications and commentary, which the publisher's context surfaces, adds further color. In one post she argued that smaller fund investors are more risk-averse than ever, with limited partners exerting pressure on them, and that once a strong team is in place, outcomes depend on other factors. Another piece in the publisher's context states that mega funds are increasingly dominating most venture capital firms, with leading firms attracting the bulk of capital.
The Traders Union piece itself is brief and largely summarizes DeTommaso's remarks rather than presenting new financial data, such as specific companies, deal values or fund figures. The article notes that it may contain third-party opinions and that its content does not constitute investment advice.
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