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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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