Research

The Venture Capital industry is appealing for many reasons — the opportunity to generate wealth as an investor or as fund manager, help world-changing startups grow, and learn skills that are rarely able to developed by working in any other industry, to name a few. But is the image we commonly conjure a true reflection of the industry?

While keynote funds and headlining unicorn exits have created a rosy picture of the VC industry, the truth is that the average investor experience in VC has been remarkably poor over the past two decades. In this paper we present potential risk management practices and alternatives to the traditional VC business model in order to create a more sustainable industry practice.