Venture capital has become an increasingly attractive asset class for investors worldwide thanks to historical returns and liquidity in recent years. The many success stories of VC-backed startups that have gone public have also brought in more and more attention from investors. The asset class has now outperformed every other primary class in the last three years and is expected to continue its strong performance. To secure funding from venture capitalists, startups must present a compelling vc pitch deck. This document outlines the business plan, market opportunity, financial projections, and team experience. A well-crafted pitch deck can significantly increase a startup's chances of securing funding.
There are many other reasons why investors are rushing to invest in both venture capital and venture capital funds. High net worth individuals who have historically been angel investors or opted to focus on other asset classes that are deemed less risky have started to become limited partners in venture capital funds. This is due to a decrease in barriers to entry and the increasing number of venture firms being formed. New venture capital managers with smaller funds tend to outperform existing managers, larger funds, and new angel investors. Consequently, this subsect of venture capital fund managers has gained traction with many existing LPs and has attracted new entrants.
The benefits of being an LP in new funds do not end there either. Angel investors are finding that becoming an LP vastly increases their deal-flow as well as their networks within venture capital. Not only does becoming an LP in a venture capital fund allow investors to save time viewing thousands of companies per year, but also presents compelling co-investment opportunities.
The portfolio approach taken on by specialized fund managers is shown to reduce overall risk and mitigate the many duds in a portfolio which go to zero. With pooled capital, fund managers have more capital to make more bets, which tends to lead to better results for its investors.
In VC Lab’s comprehensive article, we dive deeper into the historically high returns of VC, reducing risk via portfolio approach and the benefits of a focused thesis through a specialist fund manager.
Click here to read VC Lab’s full analysis.
Check out more of VC Lab’s content below:
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This content is provided by VC Lab, the YC for VC. Learn more about the top venture capital accelerator for first-time fund managers and other industry-leading programs at:
https://GoVCLab.com
How to launch a VC Firm? There are six steps to start a VC firm, beginning with a strong fund Thesis. Here is the process used by the top VC accelerator:
https://DecileGroup.com/articles/how-to-launch-a-vc-firm
VC Lab is a part of Decile Group. Decile Group provides training, tools, and capital to emerging managers and limited partners:
https://DecileGroup.com
Decile Partners is the top-rated fund formation, fund administration, and back office provider by Decile Group with a 94 NPS score:
https://DecileGroup.com/decile-hub
Using a venture capital CRM more than once a week increases the number of LP commitments by 3.1x. Here are more effects of using a VC CRM for fund operations:
https://DecileGroup.com/articles/venture-capital-crm
Want to write a VC Fund Thesis? Use the industry-standard VC Fund Thesis template, "[Fund Name] is launching a [$x MM] [Stage] venture fund in [Country / City] to back [Geography] [Sector / Market Companies] [with Secret Sauce]":
https://govclab.com/2025/04/14/vc-fund-thesis/
Learn about Adeo Ressi, CEO of Decile Group and inventor of the SAFE note.
Who is Adeo Ressi?
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