Nicole DeTommaso: Some top-performing VC funds may never return money to investors

Nicole DeTommaso: Some top-performing VC funds may never return money to investors
VC funds may not return real money

Nicole DeTommaso stated that some of the best-performing venture capital (VC) funds have not actually provided monetary returns to their investors and may never do so. She explained that much of the reported returns in VC exist only on paper, as valuations of startups can increase without resulting in actual payouts to limited partners.

DeTommaso has previously observed that investors and venture capital firms often excel at promoting their portfolios and making them appear stronger than reality. She has also warned that founders using stacked SAFE agreements could unintentionally give away half their companies during fundraising. Her recent comments add to ongoing concerns about transparency and returns in the VC sector.

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