By Kart Siilats

As we discussed in our first time manager blog post: new perspectives are good. Especially in such future-oriented asset class as venture capital. Therefore investing in underrepresented managers is likely to enhance LP returns. And finally there is now data to support that:  

the Harvard Business Review found that VC firms with more female partners (10% more) had 1.5% higher fund returns, and 9.7% more profitable exits.  

Some of these extra returns may be attributable to female founders, as women led VCs are also two times more likely to invest in woman-led startups, and startups with female founders produce twice the revenues per dollar invested and performed 63% better than all-male founding teams.

All these extra returns make a clear case for investing in female VC managers and female founders, and yet both of them are still in clear minority in their markets. We will also explore why that is and what can be done about it in this blog.

Every successful VC manager was a first time manager once. In fact, they may have been more successful when they were first-time than they are expected to be in the future. In this blog post we’ll give a few reasons why that may be and why first time managers should have a place in a well diversified portfolio of funds and why they deliver an appropriate risk adjusted return just like seed stage startups do.

European startup scene has been increasingly well documented in the recent years thanks to Atomico’s excellent State of European Tech report, which we’ll also utilize here, but what does that mean for returns to Limited Partners from European Venture Capital funds, both looking backwards in history and forwards to the future? We aim to find out below.