Tech is a data-driven world, so it makes sense that people in the tech world love lists.
And when you combine that reality with the fact that finance types are fond of rankings, one would think that CB Insights' The Top 100 Venture Capitalists list would be like manna from heaven for those competitive dudes in the VC world.
CB Insights even showed their work:
We started working with The New York Times in late 2015 to identify and rank the top 100 venture capital professionals using the CB Insights Investor Mosaic algorithm.
It is a purely data-driven / algorithmic ranking that uses CB Insights data. We’d gathered this data via our machine learning technology (dubbed The Cruncher) as well as via several thousand direct submissions from firms and individual professionals using The Editor.
All their work:
The Investor Mosaic page walks through the factors considered in the algorithm in some detail but at a high-level, it considers several factors including:
- An investor’s exits – the frequency/volume, size, and stage of entry
- Network centrality – connectivity to other investors. Think of it as akin to Google Pagerank.
- Consistency – stage, industry consistency of investments
- Illiquid portfolio company value – frequency, size and stage of entry in high-value (but un-exited companies). Given relatively less weight as these are paper valuations
- Recency of performance – Our focus was on these metrics since 2008. As a result, we didn’t give a lot of credit to those who made glorious picks in the 80s, 90s, or early 2000s. This is a ranking of today’s best VCs — not the best VCs in history.
Looks pretty thorough, even if it's just justification to make a list like all lists are...
So who won?
Oh, Fred Wilson was second?
Well, Fred's usually pretty outspoken about his displeasure, but we're sure that he'll just respect this subjective process or just ignore the rankings entirely...
Or that...He'll totally do that.
Rock on, Fred Wilson. Rock on forever.
The Top 100 Venture Capitalists [CBInsights]