VC 101: Importance of Portfolio Diversification in Venture Capital
In this episode, we delve into this asset class’s intricate dynamics, unraveling the power law’s importance and impact on potential returns. In this video, we provide insights into how Alumni Ventures strategically ensures fund diversification, building a well-balanced portfolio designed to mitigate risk and maximize returns for our investors.
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Join our team as we explore the intricate dynamics of this asset class, highlighting the significance of the power law and its impact on potential returns.
- Mike Collins (Founder, CEO, and Board Chair)
- Laura Bordewieck Rippy (Managing Partner and Board Member)
- Andy Ervin (Deputy Chief Investment Officer)
- Mark Edwards (Chief Investment Officer)
- Luke Antal (Co-Founder and Chief Community Officer)
- Peter MacEwan (Deputy Chief Community Officer)
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In this video, we review:
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Benefits of Diversification
All portfolios benefit from diversification, especially in venture capital. - Home
Components of Diversification in Venture Capital
Diversification in venture capital includes the number of companies in a portfolio, stages, sectors, and geography. - Home
The Power Law in Venture Capital
Portfolio theory emphasizes the importance of diversification. A few high-performing companies can drive returns for the entire portfolio. - Home
Alumni Ventures' Strategy
Alumni Ventures' portfolio approach optimizes potential returns by leveraging diversification. Serial investing and diversifying by vintage year can also allow an investor to diversify by time.
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No Obligation to Invest
Only invest in deals you like. - Home
Co-Invest with Elite VCs
Frequent co-investors include a16z, Sequoia, Khosla, Accel, and more. - Home
Deal Transparency
Due Diligence and Investment Memos provided. Live Deal discussions with our investment teams.
Contact [email protected] for additional information. To see additional risk factors and investment considerations, visit av-funds.com/disclosures.