VENTURE CAPITAL

VENTURE CAPITAL

A form of financing that investors provide to start-up/early stage businesses often associated with high risk.

TYPES OF VENTURE CAPITAL FUND MANAGERS 

  1. Seed Capital

  2. Early Stage Capital

  3. Late Stage Capital

  4. Pre-IPO

  5. Venture Fund of Funds

  6. Venture Debt

WHY INVEST IN VENTURE CAPITAL?

 

Investing equity in early stage businesses offers the opportunity at high returns and portfolio diversification across multiple business stages in a private equity allocation.  Venture investments allow LPs to stay on the cutting edge of entrepreneurship.

 

TYPES OF INSTITUTIONAL INVESTORS 

Public Pension Funds (17%)

Sovereign Wealth Funds (16%)

Asset Manager (10%)

Endowment (9%)

Other Institutions: Family Offices, Private Pensions, Foundations, Banks

LEADING VC LPS

  1. CPP Investment Board (Public Pension Fund) Canada, PE AUM – 61 Bn

  2. Kuwait Investment Authority (Sovereign Wealth Fund) Kuwait, PE AUM – 60Bn

  3. GIC (Sovereign Wealth Fund) Singapore, PE AUM – 44Bn

  4. ADIA (Sovereign Wealth Fund) UAE, PE AUM – 34Bn

  5. CDPQ (Public Pension) Canada, PE AUM – 28Bn

  6. CalPERS (Public Pension) California, PE AUM – 27Bn

  7. APG (Asset Manager) Netherlands, PE AUM – 27Bn

  8. Ontario Teachers Pension Plan (Public Pension) Canada, PE AUM – 26Bn

  9. La Banque Postale (Bank) France, PE AUM – 26Bn

  10. China Investment Corporation (SWF) China, PE AUM - 23Bn

PREQIN LEAGUE TABLE 2019; PreQin

https://docs.preqin.com/reports/2019-Preqin-Global-Private-Equity-and-Venture-Capital-League-Tables.pdf

 

STATE OF VENTURE CAPITAL FUNDRAISING 

US VENTURE CAPITAL INVESTMENT SURPASSES $130 BN; Pitchbook

https://pitchbook.com/media/press-releases/us-venture-capital-investment-surpasses-130-billion-in-2019-for-second-consecutive-year

 

THE Q1 2020 GLOBAL VC REPORT: FUNDING SLOWLY IMPACTED BY CORONA; Crunchbase News

https://news.crunchbase.com/news/the-q1-2020-global-vc-report-funding-slowly-impacted-by-coronavirus/

 

ARTICLES OF INTEREST ON VENTURE CAPITAL 

STATE OF VENTURE CAPITAL INDUSTRY; Toptal

https://www.toptal.com/finance/venture-capital-consultants/state-of-venture-capital-industry-2019

 

VENTURE CAPITAL HAS STRONG SHOWINGIN Q1 2020; PRNewswire

https://www.prnewswire.com/news-releases/us-venture-capital-investment-has-strong-showing-in-q1-2020-with-economic-downturn-brought-on-by-covid-19-primed-to-slow-activity-301039802.html

 

THE PARADOX OF 2020 VC; Tech Crunch

https://techcrunch.com/2020/01/17/the-paradox-of-2020-vc-is-that-the-largest-funds-are-doing-the-smallest-rounds/