2 replies
What was the TL;DR?
_Key takeaways_
_• Variations in industry specialization across venture capital funds have not been associated with significant differences in performance outcomes based on a sample of 451 US-based funds with vintage years between 1996 and 2015._
_• Specialized strategies in the two main industries relevant to VC investing, tech and healthcare, have not exhibited significant outperformance after controlling for market conditions and sector exposure._
_• Limited partners should be wary of any claims that industry specialization leads to a relative performance edge._
I am curious about the data being used. I'm not sure I believe them. First, the data is only up to 7 years ago. Second, it is Pitchbook which sells data on VC firms, and many do not wish to participate.
_• Variations in industry specialization across venture capital funds have not been associated with significant differences in performance outcomes based on a sample of 451 US-based funds with vintage years between 1996 and 2015._
_• Specialized strategies in the two main industries relevant to VC investing, tech and healthcare, have not exhibited significant outperformance after controlling for market conditions and sector exposure._
_• Limited partners should be wary of any claims that industry specialization leads to a relative performance edge._
I am curious about the data being used. I'm not sure I believe them. First, the data is only up to 7 years ago. Second, it is Pitchbook which sells data on VC firms, and many do not wish to participate.
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