Investors wishing to add a little bit of “spice” into their portfolios are returning to venture capital, an asset class that’s recovering quickly from the recent recession.
Patrick Reeve, managing partner of Albion Ventures, made a strong pitch for venture capital this morning when he said simply that private investors “don’t like risk, don’t like nasty surprises, like income, are hopeful and tend to be in it for the long-term (until they get frightened).”
If that’s the case then why put money into new start-up companies that could fail?
That’s where Albion Venture’s investment approach comes into play. Reeve said it’s important to devote a larger chunk of your portfolio to income-generating, asset-backed companies (such as leisure, healthcare and business services), a smaller chunk to capital growth companies, and a piece to cash.
The push for venture capital appears to follow a recent trend towards small and mid-cap companies.
Currently, typical venture capital portfolios comprise a mixture of healthcare, biotechnology, software, travel and retail, health and fitness, cinemas, leisure and even pubs!
After attending a few of these “don’t underestimate the little guy” events, I’m beginning to sense that it’s not just a fad. Investors are demanding transparency and they want to invest in what they understand.
Lucy Warwick-Ching
Matthew Vincent
Alice Ross
Ellen Kelleher
Steve Lodge
Josephine Cumbo
Tanya Powley
Jonathan Eley