The Architecture of Returns

Higher returns invite a second question

If one group of venture funds earns more, is it taking more risk, or using its risk more efficiently? The Architecture of Returns, Colibrí Institute's second white paper, takes up that question for emerging and established managers.

For an LP, the distinction matters when comparing managers. For a GP, it opens a practical discussion about portfolio design: company count, check size, reserves and deployment pace, and the outcomes those choices travel with.

Where the second study stands

White Paper II is forthcoming from the Institute. Until it is published, this library does not cite its findings.

For the separate question of how concentrated venture outcomes are, see the power law debate.

How Architecture uses the research

Colibrí Institute conducts independent research. Colibrí Strategies develops the Architecture Methodology and the platform that applies it. Architecture's benchmarks come from its own evidence edition, built from public fund filings, fund results published by public LPs and published studies, and each number shows its source.

The research, the methodology's design rules and a reading calculated from your inputs are different layers. Architecture evaluates how a fund is built. It does not predict how a fund will perform. The methodology page explains which numbers are measured and which are design rules.

Read the research in context

The Institute's page for The Architecture of Returns describes the study and its availability. This library does not distribute the paper. Start with the Institute's pages below when you need the study's definitions, tables or limits.

Sources

• The Architecture of ReturnsColibrí Institute · White Paper IIThe Institute's forthcoming study of risk-efficiency in emerging and established venture managers.
• ResearchColibrí InstituteThe Institute's research index, with each study's methods and current availability.