Innovation In The Venture HERE!

There is ample evidence the venture model is finally innovating (See HERE & HERE), along with the venture industry’s center of gravity expanding beyond Silicon Valley (see HERE).

Some of these changes include:

  • Structured multi-round funding strategies (Scout/Opportunity Funds)
  • Proper diversification (HERE)
  • Standardized reporting and analytics across portfolio holdings (HERE)

The best summary as to why these changes are taking place comes from Mario Giannini, Managing Director of Hamilton Lane ($1T AUM/Advisement):

‘I think portfolio construction is at least 50% of returns in the private markets. But in order to do proper portfolio construction you need data, you need analytics….you need more than just having dinners with GPs saying “…oh, I think this one is good”. ‘I just don’t think the industry as a whole has spent enough time around data & analytics to do (proper) portfolio construction…

What the optimal strategy would look like:

Institutional Investors Journal of Portfolio Management White Paper

I was invited by Frank Fabozzi, the Editor of Institutional Investors Journal of Portfolio Management (JPM) since 1986, to author a paper summarizing the ‘Why & How’ to construct and manage optimized venture portfolios.

The paper will be published in the Sept. edition of II’s JPM — which will focus on the venture and PE asset classes — but can be viewed on their website HERE.

If you would like a PDF of the full article, drop me a note.

This website stores data such as cookies to enable essential site functionality, as well as marketing, personalization, and analytics. By remaining on this website you indicate your consent.

Fill in the form