This is the follow-up on part 1 some days ago.. These were the listed VC vehicles,I presented as the base in part 1 (in brackets my short vote for the first 4)
- Softbank (too crazy)
- Kinnevik (Yes)
- Rocket Internet (bad rep)
- German Startup Group (no thanks)
- Vostok New Ventures
- Vostok Emerging Finance
I have added two US vehicles to this list:
- Firsthand Technology Value Fund (SVVC)
- GSV Capital (GSVC)
A few thoughts on Permanent Capital vs. “classical” fund structure vs. “SPACs”
In the previous post, one commentator mentioned that he was “sceptical of permanent capital” vehicles. Personally I would not support this. Berkshire Hathaway for instance is a permanent investment vehicle with quite some success. However there are other vehicles like Greenlight Re or Bill Ackman’s Persing NV which clearly have done a lousy job for shareholders as we can see in this chart: (Greenlight in yellow, Pershing Square blue):
Prof. Damodaran thinks that GE is undervalued and 5 lessons to be learned from the GE debacle
Great profile of Shane Parish (Farnam Street Blog)
Warren Buffett has been buying JP Morgan, Oracle and other Financials.
Great CNBC interview with John Malone (h/t valueinvestingworld)
MBOs seem to be an indicator that an industry might be undervalued
GlobalStockPicking looks at the Dental industry
A great overview on where innovation will happen next from Benedict Evans (A16Z):
One upfront remark: I do not recommend to invest in Venture Capital right now. The market is clearly overheated and the asset class is known to be very volatile although Warren Buffett’s Todd Combs seems to just have discovered Fintechs.
This post is ment as a “long-term perspective” view on the sector and not a buy recommendation in the current environment.
How to invest into Venture Capital as a Private Investor
Famous VC funds
Venture Capital, i.e. the industry funding (technology) start-ups is known that almost everything depends on relationships.
It is no secret that a few funds like Sequoia or Kleiner Perkins have produced outstanding returns but these funds are “invitation only”, there are little chances even for larger institutions to invest in them and for individuals without direct connections it is more or less impossible to get in.