<ul><li>Cohort analysis is crucial in venture capital, offering a way to track performance over time.</li><li>It helps VCs evaluate patterns, test assumptions, and make informed investment decisions.</li><li>This analysis groups investments by shared characteristics, enabling insights into outcomes and momentum.</li><li>Different cohort structures include vintage year, investment stage, and thematic cohorts.</li><li>Metrics such as capital deployed, follow-on rates, and exit multiples are key in cohort analysis.</li><li>VCs should focus on clean data inputs and standardized definitions for accurate comparison.</li><li>Visualization tools like waterfall charts help in understanding cohort performance.</li><li>VCs can use simple tools like Google Sheets or specialized platforms like Carta for cohort analysis.</li><li>Pitfalls to watch out for include survivorship bias, small sample sizes, and outdated data.</li><li>Cohort analysis is a continuous learning process that should inform investment decisions and fund strategy.</li></ul>

A Guide to Conducting a Cohort Analysis as a VC

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