Launch an institutional-grade VC fund in a day with no up front costs. 
Meet Start Fund
Previous Post
Next Post
2

Asked by

Community Member

on

in

Fund Economics

What is the best economic strategy for funds focusing on one sector?

I am particularly interested in healthcare, medtech and biotech startups in developing countries but I struggle to understand how specialized funds can minimize the risk of industry exposure. As an example, here in Brazil, the private healthcare system is at a record low, which in turn makes the entire industry struggle financially. How to minimize the risk on an industry performing bad when you are not diversifying sectors?
1 See in Base
1

Answered by

Community Member

on

Venture Capital is a RISK asset class and a very optimistic style of investing. The objective of venture capitalists is to fund category defining startups, and by definition, it's really difficult to spot these companies if one is bearish on the future prospects of the market. In other-words, venture capital is the R&D finance vehicle for the innovation of the future. 

How to build a VC fund model: https://govclab.com/2022/05/05/how-to-build-a-vc-fund-model/

Join VC Lab

VC Lab, the leading venture capital accelerator, empowers new and emerging managers worldwide to close ethical, high-performing funds in under six months. The program provides cutting-edge tools, expert mentorship, and a global network to raise more money in less time. Apply if you want to build a meaningful venture capital firm.

Apply Now
How do I start raising my first venture fund? What are the key considerations for becoming a Limited Partner?
How can I improve my emerging manager firm's deal flow? What strategies help attract institutional LPs?
How do I build a compelling investment thesis? What are best practices for portfolio management?
How can I differentiate my VC firm in a crowded market? What are the typical fund terms for emerging managers?