Key Takeaways
- • CB Insights ranked the top 100 venture capitalists globally, with Peter Fenton (Benchmark), Fred Wilson (Union Square Ventures), and Chris Sacca (Lowercase Capital) occupying the top three positions based on connectedness and realized exit returns.
- • Methodology emphasized realized exits over unrealized unicorn valuations, weighing factors including investor connectedness, deal timing, and valuation multiples at exit—ensuring the ranking captured demonstrated performance rather than paper gains in billion-dollar startups.
- • Top-tier VCs demonstrated outsized returns through exits in high-profile companies: Peter Fenton captured paydays from Twitter, New Relic, and Zendesk; Fred Wilson from Twitter, Tumblr, and Etsy; Jim Goetz (Sequoia) from WhatsApp, Palo Alto Networks, and Barracuda Networks.
- • Geographic and firm diversity characterized the top 20, including international representation through Neil Shen at Sequoia Capital (China), who generated returns from JD.com, Alibaba, and Qihoo 360, alongside U.S.-based mega-firms like Benchmark, Union Square Ventures, and Sequoia Capital.
- • Benchmark and Sequoia Capital emerged as dominant platforms, each placing multiple investors in the top 20 rankings, signaling institutional consistency in deal sourcing and value-creation capabilities across portfolio companies.
Summary
CB Insights, a venture capital research firm, published a data-driven ranking of the world's top 100 venture capitalists in 2016, with The New York Times featuring the top 20. The ranking prioritized measurable performance indicators over hype-driven metrics, specifically examining realized exits rather than current valuations of unicorn-stage companies.
The methodology employed two primary evaluation criteria. First, connectedness—the ability to access deal flow and information about emerging high-potential companies before competitors—reflects an investor's network quality and deal sourcing advantage. Second, exits measured returns generated when portfolio companies achieved liquidity events through acquisition or initial public offering, with CB Insights weighting the valuation at exit and the timing of the investor's initial capital deployment. Notably, the firm deliberately de-emphasized investments in billion-dollar-plus startups (unicorns) to avoid inflating rankings based on unrealized paper gains.
Peter Fenton of Benchmark claimed the top position, with significant exits from Twitter, New Relic, and Zendesk demonstrating broad exposure across software and consumer internet categories. Fred Wilson of Union Square Ventures ranked second, anchored by high-profile paydays from Twitter, Tumblr, and Etsy—establishing a pattern of successful early-stage consumer platform investments. Chris Sacca of Lowercase Capital ranked third, with Twitter and Instagram exits representing exceptional early-stage positioning in social media companies.
The top 20 list displayed geographic and sectoral diversity. Jim Goetz at Sequoia Capital ranked fifth with exits including WhatsApp (subsequently acquired by Facebook for $19 billion in 2014), Palo Alto Networks, and Barracuda Networks, reflecting strength in enterprise security infrastructure. Neil Shen at Sequoia Capital (China) ranked ninth, capturing returns from Chinese internet leaders including JD.com, Alibaba, and Qihoo 360. Bill Gurley of Benchmark also appeared in the top 10, with exits from GrubHub, OpenTable, and Zillow illustrating success across marketplace and real estate technology verticals.
Benchmark and Sequoia Capital emerged as institutional powerhouses, collectively placing multiple investors within the top 20, indicating systematic deal-sourcing capabilities, operational value-addition, and portfolio company outcomes that differentiated these platforms from competitors in the global venture capital ecosystem.
The methodology employed two primary evaluation criteria. First, connectedness—the ability to access deal flow and information about emerging high-potential companies before competitors—reflects an investor's network quality and deal sourcing advantage. Second, exits measured returns generated when portfolio companies achieved liquidity events through acquisition or initial public offering, with CB Insights weighting the valuation at exit and the timing of the investor's initial capital deployment. Notably, the firm deliberately de-emphasized investments in billion-dollar-plus startups (unicorns) to avoid inflating rankings based on unrealized paper gains.
Peter Fenton of Benchmark claimed the top position, with significant exits from Twitter, New Relic, and Zendesk demonstrating broad exposure across software and consumer internet categories. Fred Wilson of Union Square Ventures ranked second, anchored by high-profile paydays from Twitter, Tumblr, and Etsy—establishing a pattern of successful early-stage consumer platform investments. Chris Sacca of Lowercase Capital ranked third, with Twitter and Instagram exits representing exceptional early-stage positioning in social media companies.
The top 20 list displayed geographic and sectoral diversity. Jim Goetz at Sequoia Capital ranked fifth with exits including WhatsApp (subsequently acquired by Facebook for $19 billion in 2014), Palo Alto Networks, and Barracuda Networks, reflecting strength in enterprise security infrastructure. Neil Shen at Sequoia Capital (China) ranked ninth, capturing returns from Chinese internet leaders including JD.com, Alibaba, and Qihoo 360. Bill Gurley of Benchmark also appeared in the top 10, with exits from GrubHub, OpenTable, and Zillow illustrating success across marketplace and real estate technology verticals.
Benchmark and Sequoia Capital emerged as institutional powerhouses, collectively placing multiple investors within the top 20, indicating systematic deal-sourcing capabilities, operational value-addition, and portfolio company outcomes that differentiated these platforms from competitors in the global venture capital ecosystem.
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