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This article (the “Article”) is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to purchase any investment or any securities. This Article does not constitute investment advice and is not intended to be relied upon as the basis for an investment decision, and is not, and should not be assumed to be, complete. Readers should make their own investigations and evaluations of the information contained herein. The information contained herein does not take into account the particular investment objectives or financial circumstances of any specific person or entity who may receive it. Each reader should consult its own attorney, business adviser and tax adviser as to legal, business, tax and related matters concerning the information contained herein.  Except where otherwise indicated herein, the information provided herein is based on matters as they exist as of the date of preparation and not as of any future date and will not be updated or otherwise revised to reflect information that subsequently becomes available, or circumstances existing or changes occurring after the date of preparation. Certain information contained in this Article constitutes “forward-looking statements,” which can be identified by the use of forward-looking terminology such as “may,” “will,” “should,” “expect,” “anticipate,”  “target,” “project,” “estimate,” “intend,” “continue” or “believe,” or the negatives thereof or other variations thereon or comparable terminology. Due to various risks and uncertainties, actual events or results may differ materially from those reflected or contemplated in such forward-looking statements. Readers should not rely on these forward-looking statements.  Certain information reflects subjective determinations which may prove to be incorrect. There can be no assurance that the estimates or projections will be accurate or that historical trends will continue. In considering the prior performance information contained herein, readers should bear in mind past performance is not necessarily indicative of future results. All rights reserved. The material may not be reproduced or distributed, in whole or in part, without the prior written permission of PrimeAlpha LLC.

    • Jul 15, 2019

The Opportunity in Venture Capital

The Opportunity in Venture Capital

Does it make sense to allocate assets to venture capital?


Venture capital (VC) has significantly shaped the U.S. economy by funding major innovators like Amazon and Google, evidencing its crucial role in corporate growth and technological advancement.


Investments in VC offer attractive risk-adjusted returns and provide diversification benefits linked to unique market dynamics, such as technological innovation. Institutions like Yale University demonstrate that substantial allocations to VC can yield higher returns, thanks to access to top-tier funds. However, such access is limited, emphasizing the importance of selecting skilled VC managers and the right investment opportunities to leverage the sector's high-return potential.


The efficacy of VC fund-of-funds is debated, yet some studies indicate they justify their fees by adeptly selecting top-performing funds through established networks and market insights. For investors, understanding the nuances of venture capital and securing partnerships with leading funds are key to capitalizing on its long-term benefits.


Access the full report to delve deeper into the transformative impact of venture capital on the U.S. economy and its potential to enhance portfolio performance. Learn more about the historical success of venture capital investments, the strategic importance of selecting top-tier VC managers, and the expanding global landscape of venture funding.



If you do not have a work email address, please email us at info@primealpha.com and we can email you the report directly.



Table of Contents

  • Introduction to the Opportunity in Venture Capital

  • Strong Performance of Venture Capital

  • Experience of Endowments in the US

  • The Case for Fund-of-Funds

  • Domestic vs. International Early Stage Investing




Thanks to our Contributor


Spur Capital Logo


Spur Capital has a successful history of building durable relationships with top-tier venture capital firms in early-stage technology and life science as well as uncovering up-and-coming firms. Limited partners are leading endowments, family offices, foundations, and institutional investors in the United States and Western Europe.

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