This chart shows that only 5% of the VCs are generating most of the returns, and 50% of VC firms can't even return the capital that's invested in them: https://techcrunch.com/2017/06/01/the-meeting-that-showed-me...

From the article: "“Ninety-five percent of VCs aren’t profitable,” he said. It took me a while to understand what this really means."

Basically, the default mode for VCs is to either lose the money investors put in them or modest returns, which isn't particularly good given the risk of the investment class. 80%+ of the VCs you'll talk to underperform the S&P. Those general returns you see? They come from a handful of VCs, who will be much more selective. Basically you can't approach them, they'll approach you since they know they are the kingmakers in the industry.

* Also, check Slide 14 in this deck: https://www.slideshare.net/gilbenartzy/money-talks-things-yo...

- The Top 20 VC funds, which represent 2% of all VC Funds, generate 95% of all VC returns - 50% of VC firms return less than 1x of invested capital - An additional 35% of VC firms return less than 2x of invested capital

So yeah, it's even worse than 80/20 rule. 9 out of every 10 VC firms you talk to will most likely be loser funds that don't generate substantial returns. Focus on the top 20 VC funds if you want to be in with the real winners. For everyone else, they're just money managers, mostly losing their investor's money, but pretending like they're kingmakers.

Do you feel it's the VC's responsibility to carry you and make your startup successful? Or is their role to provide funds, and possibly some introductions and guidance, and let the chips fall where they may?

I think he meant “don’t give money to VCs, not “don’t take money from VCs”.

That assumes the top VC firms are stable over time. I suspect individual funds are largely random with occasional massive win goosing a firms returns for years.

You might be right. I'm trying to find the list of those 20 VCs that generate the top returns on a year by year basis to see if there is consistency.

But there are some repeat winners: a18z, Sequoia, Kleiner Perkins, NEA, index ventures, and a few others that have some name recognition.

Notably 500 Startups is not in this list. Their spray and pray approach didn't really work.