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.
Most professional investors would like to benefit from the hypergrowth of startups changing the world beyond recognition over the last decade. At the same time, many consider the asset class still too risky or too small to allocate meaningful capital to. Below, we’ll offer a view on how diversification and alignment of interests between fund managers and investors reduce those risks and how venture capital produces outsized returns compared to other asset classes.