Private Assets

The opportunity in early stage venture capital

Venture capital provides access to investment opportunities in game-changing companies with the potential to disrupt entire industries…but only if done correctly.

10/24/2018

Steven Yang

Steven Yang

Head of Global Venture Investments

Michael McLean

Michael McLean

Investment Director

Duncan Lamont, CFA

Duncan Lamont, CFA

Head of Research and Analytics

Venture capital provides access to investment opportunities in game-changing companies with the potential to disrupt entire industries…but only if done correctly. In our experience 20% of companies drive 80% of returns, so success hinges on accessing the best opportunities. However, rather than being stacked against you, a well thought-through approach to portfolio construction, in our view, can ensure the odds are stacked in your favor.

Venture capital has financed some of the biggest successes in technology of our time.

Venture capital has a rich history of delivering both strong returns for investors and helping early stage companies realize their potential.

Previous venture capital (or VC) success stories include the first US public company to be worth more than $1 trillion, Apple, and other household names such as Microsoft, Amazon, Facebook and Google, each worth more than $500 billion. VC has turned entire industries on their heads. The music, newspaper, and media industries have all been disrupted in this way. Furthermore, venture capital-backed healthcare companies have developed medicines that are used to defeat previously incurable diseases, while others search for a cure for cancer. It would not be an overstatement to say that venture capital has been behind many life changing developments.

The views and opinions contained herein are those of Schroders’ investment teams and/or Economics Group, and do not necessarily represent Schroder Investment Management North America Inc.’s house views. These views are subject to change. This information is intended to be for information purposes only and it is not intended as promotional material in any respect.