Investing in the innovation economy

This session examined the venture capital landscape and how it has changed due to the pandemic. What is the future outlook for venture investing in the US and globally? Click here to view Magnus’ presentation slides[vc_quotes layout=”accordion” 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title=”Moderator” el_class=””][vc_empty_space height=”10px”]

Key takeaways

  • nvestors should tap venture capital since many companies are staying private for longer. Investors who have backed start-up innovation have played a significant role in helping find solutions in healthcare and technology through the pandemic.
  • The VC space show really high returns from the top decile funds but enduring volatility.
  • Regulatory changes mean more capital is flowing into the asset class.
  • Venture is now a meaningful part of the overall asset allocation at PRINCO.
  • Some investors are increasingly taking their allocation out of buyouts and putting more into venture. Venture will be the risk generation for portfolios going forward, leading out-performance.
  • Although San Francisco and China will continue to produce great companies for years to come, more cities across the US are developing hubs for fast growing companies like Boston, Miami and Seattle. Outside the US, panellists listed Stockholm, Berlin and Singapore as venture hubs alongside Vietnam, Japan and Korea.
  • The pandemic (and travel ban) has made geography less of an issue when backing founders.
  • Investors seeks to fund entrepreneurs and founders with drive to solve a problem and grit to press on when they hit barriers.
  • The SPAC trend holds positives and negatives for start-ups. On one hand, it provides these companies with a new source of capital. On the other it has resulted in some companies going public too soon.
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Unanswered questions and answers

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Related reading

Opportunity for asset managers – October 2020 The Case for venture – October 2020[vc_empty_space height=”10px”]

Editorial content

Venture capital: how it adds value in a diversified portfolio[vc_empty_space height=”10px”]

Poll results

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