VC firms are managed by investment professionals (normally referred to as general partners or venture capitalists) who make the investment decisions for the company
According to Wood, “venture capitalists may intentionally spread investments across different industries to either minimize the industry-specific risk of their portfolios or simply experiment by investing in new industries.”
Venture Capital Portfolio Strategy
You seem to have a lot of passion for start-ups? Any particular reason?
Start-ups are the most important vehicle for spurring technological innovations.
Proper portfolio management encompasses information analysis, intelligent decision-making, and resource commitments.
What does portfolio management entail in your book? And what’s its significance?
The first metric is financials and cash position
Proper portfolio management encompasses information analysis, intelligent decision-making, and resource commitments.
How often do you change your investment strategies?
As a VC, you have to be proactive. That means being ready to change your strategy if the target market around you changes.
One thing that comes to mind right now is not having capital reserves for follow-on investments.
What are some of the things to avoid when creating a portfolio strategy?
What advice can you give emerging start-ups?
VCs take portfolio management seriously because they want to see their investments succeed and make money.