My Alliance VC colleague Arne Tonning has written a longer article about institutional investing in venture capital. It is a real deep dive into how well venture has done over the last twenty years (the best funds have done very, very well). As the article covers multiple areas it is not easy to take only one idea from the article, but the TL;DR gives a good overview of what the article covers:
- VC has driven returns for the Endowment Model + proven itself
- The Power Law dictates winning investment strategies
- VC delivers top returns for consistent, diversified and selective LP allocations
- 🇪🇺 returns are on par w/🇺🇸 and 🇩🇰🇫🇮🇮🇸🇳🇴🇸🇪 tops in efficiency 💪
- Call to action: Join the ride 🚀