How do venture capital firms strategically balance their investment portfolios to mitigate risk and maximize returns, while considering factors beyond financial performance, such as social impact and environmental sustainability?
I am particularly interested in healthcare, medtech and biotech startups in developing countries but I struggle to understand how specialized funds can minimize the risk of industry exposure. As an example, here in Brazil, the private healthcare system is at a record low, which in turn makes the entire industry struggle financially. How to minimize the risk on an industry performing bad when you are not diversifying sectors?
Fund Management Fees are typically 1% - 2% of the fund size. Are there other fee arrangements that can be used?
What happens in the event that an investment is made in a company, but there is no liquidity event for that equity (or token) by the time the fund term has finished? Said another way, how do we manage the disposal of non-liquid assets after completion of the fund?
How important is it for fund managers to be located or based in the target geography of the investments?
This is specific to Europe. Which country is best to setup the fund. What key considerations exist before choosing a country of fund domicile. Taxation, access to LP's, setup costs, deals availability, conducive startup policy etc..
Seeking what are some typical objections LPs may ask from a First-Time / Emerging Manager and how best to answer them. Try to craft my answers to get closer to more "Yes"
Do Impact funds generally generate lower returns than others? What is the expectation held by Limited Partners?
Initial Coin Offerings (ICOs), Security Token Offerings (STOs), etc.
While we are raising funds, is there a bare minimum cost way to register an LLC to "hold" the entity name?
How relevant is the domicile when building a Vc fund? Are there countries to avoid? Where will the domicile impact?
Given how venture funds might be transforming and operationalizing, how do you think about the key tradeoffs of deciding to orient your career towards one of the following paths: 1. General Partner at VC Firm 2. Venture Partner (potentially across multiple VC Firms) 3. Operating Partner / COO at a VC Firm Are there rapid ways to perform skills self-assessments so that I can understand the option space and what paths might be a great fit / have the most interesting opportunities? Thanks so much!
In Hollywood, I've always seen famous shows like Silicon Valley which highlighted not only the initial financial investment into a promising startup but also showed how they helped guide them to a major milestone. I was wondering how much of this guiding do Venture Capital firms actually do?
I'd like to see how many investors have been founders themselves and/or worked at a startup before. Are they better at investing?
My fund name is a combination of two words that are common terms in the sector. There are funds that have only one or the other word in their names, but not in combination. The corp name, the domain, trademark for my chosen combination are all available. Can I still be sued?
