Venture capital — an attractive and proven asset class for long-term financial returns
As the “Endowment Model” has become broadly adopted by US institutional investors, venture capital (VC) has proven itself as a powerful instrument for long-term financial returns and value creation. Most institutional investors and long-term capital allocators in Europe have yet to adopt the same model, and venture capital remains somewhat of an under-communicated, unfamiliar and opaque asset class. The mechanics that make venture capital successful are similarly unfamiliar. This article outlines the case for VC from a European and Nordic perspective with a view to inspire larger allocations.