Venture capital managers provide financing to early-stage companies that have high long-term growth potential.
Venture capital funds make small investments (<$25m), taking minority stakes in a relatively large portfolio.
Venture capital managers take an active involvement, helping to define all elements of the company’s strategy, providing advice and guidance to the board based on their sector and geographic expertise
To diversify away this risk, venture capital funds generally make a large number of small investments. That way, even if most investments in the portfolio fail, the incredible success of a few will more than make up for them in overall return.
¹ For reference only. Moonfare investments are offered in USD and EUR. Minimum investment may vary by country and local regulation.