Friedberg notes top NASDAQ stocks returned 10x over ten years while top 5% of venture funds only returned 3x.
“In the past ten years, if you bought the top 10 stocks on the NASDAQ, you would have made 10 x. Okay. It's a crazy statistic.”
Friedberg cites top VC firm data showing 40% of capital in down rounds lost money while up rounds generated returns.
“On the rest of the portfolio where things were up rounds and things were going well and they put more money in, they made a lot of money.”