Lots of folks who are new to VC have been asking us 'why invest with emerging managers'? Here is the data 👇🏽
Cambridge Associates recommends venture investing as a part of inter-generational wealth planning. According to a report, "new and developing fund managers consistently rank as some of the best performers" and...
"The data suggest that VC has matured and today exhibits a closer risk/return profile to global PE (buyouts and growth) than it did in the 1990s."
From Prequin: "Our analysis indicates that investors participating in an emerging manager’s first offering tend to be rewarded with better returns than if they had allocated capital to a newly launched fund managed
by an established firm..."
"... long term investors are likely to benefit most from
investing with emerging managers." Report: docs.preqin.com/newsletters/hf…
And from @PitchBook: "As of Q2 2020, 17.7% of first-time funds had an IRR of more than 25% compared with 11.3% of vehicles that are Fund IV or later." Report: pitchbook.com/news/articles/…