Investors in venture capital funds are typically very large institutions such as pension funds, financial firms, insurance companies, and university endowments—all of which put a small percentage of their total funds into high-risk investments. They expect a return of between 25% and 35% per year over the lifetime of the investment. Because these investments represent such a tiny part of the institutional investors’ portfolios, venture capitalists have a lot of latitude.
25
200 reads
CURATED FROM
IDEAS CURATED BY
I am passionate about Investment and most importantly investing in businesses directly. Had a conversation with the VC Lab on the formation of my new Venture Capital firm and I needed to compare my fundraising strategy with what I can find on the internet, and that led me to this article by Harvard Business Review (One of my favourite places to go lol)
“
The idea is part of this collection:
Learn more about moneyandinvestments with this collection
Ways to counter the Great Resignation
Strategies for making better decisions
Tips for giving effective feedback
Related collections
Similar ideas to Sufficient Returns at Acceptable Risk
VC funds have investors in large institutions like pension funds, insurance companies and financial giants. They place only a small fraction of their funds into startups and high-risk investments.
More than good people or good ideas, VCs look for good industries to invest in.
Funds are structured to guarantee partners a comfortable income while they work to generate those returns.
The venture capital partners agree to return all of the investors’ capital before sharing in the upside. However, the fund typically pays for the investors’ annual operating b...
Asset manaement is a service that is offered by financial institutions that cater to high net-worth individuals, government entities, corporations, and institutional investors such as colleges and pension funds.
Asset managers have fiduciary responsibilities where they make decisions on beh...
Read & Learn
20x Faster
without
deepstash
with
deepstash
with
deepstash
Personalized microlearning
—
100+ Learning Journeys
—
Access to 200,000+ ideas
—
Access to the mobile app
—
Unlimited idea saving
—
—
Unlimited history
—
—
Unlimited listening to ideas
—
—
Downloading & offline access
—
—
Supercharge your mind with one idea per day
Enter your email and spend 1 minute every day to learn something new.
I agree to receive email updates