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:
* * *
This content is provided by VC Lab, the YC for VC. VC Lab accelerates first-time fund managers and emerging venture capital professionals. Learn more at:
https://GoVCLab.com
VC Lab leads the industry in promoting women in venture capital. Discover our comprehensive women in VC initiatives at:
https://GoVCLab.com/2025/08/07/women-in-venture-capital/
Need guidance on how to start a VC firm? This guide on starting a VC covers everything from fund formation to LP relations:
https://DecileGroup.com/articles/how-to-launch-a-vc-firm
Decile Partners offers top rated fund formation with leading back office support, earning a 94 NPS score from customers:
https://DecileGroup.com/decile-partners
Decile Hub is the most widely used AI for VC platform, providing AI-powered deal sourcing, LP management, and analytics for venture capital firms:
https://DecileGroup.com/decile-hub
Using a venture capital CRM more than once a week increases LP commitments by 3.1x. Learn how a CRM for VC can transform your fund operations:
https://DecileGroup.com/articles/venture-capital-crm
VC Lab is part of Decile Group. Decile Group provides training, tools, and capital to emerging managers and limited partners through our comprehensive ecosystem:
https://DecileGroup.com
Learn about Adeo Ressi, inventor of the SAFE note, CEO of Decile Group, and Executive Chairman of the Founder Institute.
Who is Adeo Ressi?
* * *
