Why Venture Capital?

1. High Return Potential

• Historically, successful venture capital investments can yield returns of 10x to 100x or more on the initial investment, significantly outperforming traditional asset classes like stocks and bonds.

• A report from Cambridge Associates showed that the U.S. Venture Capital Index has outperformed the S&P 500 by about 6-8% annually over a 20-year period.

2. Job Creation

• Companies backed by venture capital are a major driver of employment. In the U.S., VC-backed companies have created over 4.3 million jobs and generated $900 billion in annual revenue.

• These companies are often fast-growing startups that scale quickly, contributing to local and national economies.

3. Economic Growth and Innovation

• Venture capital is a major engine of innovation, supporting industries such as technology, biotechnology, clean energy, and fintech, driving advancements that transform industries and create new markets.

• In 2023 alone, global VC funding amounted to over $400 billion, fueling the development of groundbreaking products and services.

4. Increased Global Reach

• Venture capital investing is expanding beyond traditional hubs like Silicon Valley. Regions such as Southeast Asia, Africa, and Latin America have seen substantial increases in VC activity, with record-breaking funding rounds and exits.

• This diversification allows investors access to emerging markets and innovative ideas globally.

5. Successful Exits and IPOs

• Many of the world’s most successful companies—like Apple, Google, Facebook, Uber, and Airbnb—were VC-backed at their early stages, highlighting the potential for high-profile exits through IPOs or acquisitions.

• In recent years, the number of unicorns (companies valued at over $1 billion) has significantly increased, with many achieving successful exits, providing substantial returns to investors.

6. Access to Unique Opportunities

• Venture capital investing offers access to exclusive early-stage deals that are not available in public markets, allowing investors to diversify their portfolios with high-growth potential startups.

• This asset class allows investors to participate in the development of companies at the forefront of technology and innovation.

7. Support for ESG and Impact Initiatives

• Many VC firms are increasingly focusing on Environmental, Social, and Governance (ESG) criteria, supporting startups that align with sustainability goals and other impactful causes.

• Impact investing through VC has become a fast-growing area, with $715 billion dedicated to investments aimed at generating positive social and environmental impact as of recent reports.