In the dynamic world of venture capital, selecting the right fund manager is crucial for success and thus, returns. At Venionaire Capital AG, we believe that “First Time Managers” offer a valuable and exciting opportunity, particularly in Europe, which is often overlooked. Here are seven reasons why we believe investing in First Time VC Managers is worthwhile:
First-Time Managers often bring fresh and innovative perspectives to the table. They are willing to push boundaries and explore new avenues to achieve outstanding returns.
Being their first fund, First-Time Managers are highly motivated, usually heavily invested themselves (i.e., they have “Skin in the Game”), and often deliver more successful results. They are eager to build a positive track record that advances their career in the industry.
With fewer portfolio companies, First-Time Managers can invest more time and attention into each one. This engagement can lead to better decisions and ultimately, better returns.
Access to New Markets
First-Time Managers are often willing to focus on emerging markets or sectors, while more established fund managers may need to stick closer to their standing strategies. This access to new opportunities, seizing new market chances, can diversify your portfolio and increase your returns.
Without the burden of a long history or a set corporate culture, First-Time Managers can be more flexible in their approach. They can respond quicker to market changes and often act much more entrepreneurial or even unconventional.
Potentially Higher Returns
Since First-Time Managers are managed more directly by the founding partners, risks can be better controlled compared to employees of an established manager (potentially with less experience). The potential to achieve higher returns is statistically proven. Of course, managers and a solid strategy must be carefully selected.
As one of the first investors in a fund, you can build a strong relationship with the management team. These relationships can prove invaluable over time. Both in terms of access to information and the ability to influence future investments.
Furthermore, at Venionaire Capital AG, we believe that combining investments in First-Time Managers with direct angel investments can be a strong strategy. This way, you can diversify your portfolio and leverage potential synergies between companies in your portfolio. Additionally, you can learn from the experiences and knowledge of fund managers.
As a matter of fact, we invest via the syndicate fund of the European Super Angels Club (ESAC), an initiative by KPMG Austria Partners and Venionaire Capital. With the combined financial strength and know-how we pool risk and gain access to young European top companies.
Whether you are an experienced investor or just entering the world of venture capital, we at Venionaire Capital AG are here to support you. We believe that First-Time Managers represent an exciting investment opportunity, and we look forward to helping you make the most of this opportunity.
In the world of venture capital, there is no one-size-fits-all approach. But we believe that First-Time Managers are worth serious consideration. Contact us today to learn how we can help you optimize your VC investment strategy.