The hope of good returns from venture capital isn't enough to justify investment in this asset class. (Flickr user mrsdkrebs)
(MoneyWatch) Venture capital!
Even the name of this alternative asset class is tantalizing. Investors, both institutional and individual alike, yearn to be "players." They make investments for the same reason they buy Rolex watches and buy oversized Gucci bags with labels proudly displayed. Just as with such "accessories," they want their investments to convey status, wealth, and sophistication.
This need or desire to be a member of an exclusive club explains why there's so much investment in venture capital (and hedge funds).
Yet the evidence (as presented in my book "The Only Guide to Alternative Investments You'll Ever Need") demonstrates that investments in private equity and hedge funds have largely represented the triumph of hype and hope over experience. The latest proof comes from a study by the Kauffman Foundation, a major investor in private equity funds.
After two decades of experience, its investment team decided to analyze its 20-year history with venture capital investing in nearly 100 funds, including some of the most notable and exclusive firms. The following summarizes its findings:
Even the name of this alternative asset class is tantalizing. Investors, both institutional and individual alike, yearn to be "players." They make investments for the same reason they buy Rolex watches and buy oversized Gucci bags with labels proudly displayed. Just as with such "accessories," they want their investments to convey status, wealth, and sophistication.
This need or desire to be a member of an exclusive club explains why there's so much investment in venture capital (and hedge funds).
Yet the evidence (as presented in my book "The Only Guide to Alternative Investments You'll Ever Need") demonstrates that investments in private equity and hedge funds have largely represented the triumph of hype and hope over experience. The latest proof comes from a study by the Kauffman Foundation, a major investor in private equity funds.
After two decades of experience, its investment team decided to analyze its 20-year history with venture capital investing in nearly 100 funds, including some of the most notable and exclusive firms. The following summarizes its findings:
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READ MORE BELOW VIA @CBSNES benny quetell @resilient_ent resilient media entertainment venture capital
#PRIVATEEQUITY #VENTURECAPITAL, #HEDGEFUNDS, #INVESTMENTBANKING & a few fun things as well. Check US OUT: http://on.fb.me/vch6FQ http://linkd.in/oiB29lhttp://on.fb.me/sdaWqc http://bit.ly/uhH9hQ http://bit.ly/trKLuj http://goo.gl/Q376nkeywords: #PrivateEquity, #HedgeFunds, #VentureCapital, #InvestmentBanking, #AlernativeAssets, #CapitalMarkets, #MergersAndAcquisitions, #WallStreet, #IPO #ResilientMediaEntertainment, #IPO, @Resilient_Ent, #Film, #Music, #VideoGaming, #Media, #Fashion, #TV, #Technology #JointVentures #FaceBook #Magazines #PublicRelations #Radio #WealthManagementtags: +PrivateEquity, +HedgeFunds, +VentureCapital, +InvestmentBanking, +AlernativeAssets, +CapitalMarkets, +MergersAndAcquisitions, +WallStreet, +IPO +ResilientMediaEntertainment, +IPO, +@Resilient_Ent, +Film, +Music, +VideoGaming, +Media, +Fashion, +TV, +Technology +JointVentures +FaceBook, +Magazines +PublicRelations,+Radio, +WealthManagement
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