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Mar 19, 2020
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Venture Capital

White Paper: Venture Capital The Asset Class — A Review of Risk, Returns, and the Future of VC Allocations

Author
GoingVC Team

🔍 Key Insights

Introduction

With the proliferation of technology-based startups in the last 10+ years and the intervention of the term ‘unicorn’ in everyday tech-talk, it is not unfair to say that startups are eating the world. Recent innovations in historically tech-lagging industries such as Health Care, Financial Services, and Education have created vast amounts of opportunities for the venture capital industry. According to Invesco, the top quartile of venture capital funds have outperformed other asset classes in each of the trailing 5, 10, 15, 20, and 25 year periods. Given the strong historical performance of venture capital (and the obvious use of technology in our daily lives), why does it remain an opaque industry and one that sees relatively smaller allocations within institutional portfolios? For GPs themselves who are currently raising funds or considering the prospect of launching a VC firm, it is important to understand the dynamics of venture capital as an asset class, especially given the outsized returns that have been realized by investors and the continued ascent of mega-funds, frothy private market valuations, and compelling macro trends.

General Partners of VC funds, whether they realize it or not, are not only competing for capital against other VC funds, but with other asset classes such as equities, fixed income, real estate, and hedge funds, among others. Therefore, having an understanding of venture capital as an asset class and how it fits into institutional portfolios is just as critical as daily fund and portfolio management. The same can be said for those seeking careers in the industry — how might fund sizes, stage focus, and the current environment shape a potential career in the Venture Capital industry?

What’s included in this research paper:

  • An introduction to the Venture Capital asset class
  • How and why LP’s allocate to VC and historical performance
  • Why early stage and and small fund sizes outperform
  • Why risk limits allocations to VC within institutional portfolios
  • What it all means for VC going forward

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Frequently Asked Questions

Weʼre seeking people who have a demonstrated passion for, and persistence in, pursuing a career in venture capital. If youʼre admitted, we expect you to give first, show up, work hard, contribute, and ultimately make the group better.

Participants in past GoingVC cohorts have come from a variety of academic backgrounds and career paths, including tech companies like Zynga, Uber, Amazon, Google, Hustle Fund, Lowercarbon Capital, Mercury Fund, Salesforce Ventures, Lerer Hippeau, BBG Ventures, Redpoint Ventures, USV, and General Catalyst.

Weʼve also had GoingVC members who were finishing up their college degrees, and others further along in their careers.

Weʼve had former engineers, entrepreneurs, product managers, management consultants, angel investors, investment bankers, and many more.

Yes! Itʼs a part-time program that takes just about 4-6 hours per week.The majority of participants are working full-time, interning with a VC firm, or going to school while participating in the program.

There is no “perfect” age to participate in the GoingVC program. Itʼs more about what you want to get out of it and whether we can provide that for you.

Weʼve had members who recently graduated or are currently in grad school, as well as others who were much later into their careers.

GoingVC is a geographically agnostic program. The investment skills youʼll learn are universal.

While we donʼt target any specific cities for alumni job placement, members have gone on to find VC roles all over the world.

Live sessions typically take place on Tuesdays or Thursdays at 5 PM PST.

If you canʼt make the live calls, no problem. We record every lecture so you can watch or listen on your own time, whether on your computer or phone. Many members complete the program asynchronously.

GoingVC (US): $8,999

GoingVC Europe: €7,449 / £6,449

We strive to make GoingVC accessible, regardless of your financial situation. We offer flexible payment terms, including payment plans, to help make the program more manageable for different budgets. For U.S. applicants, financing options are available through our partner, Climb.

If for any reason youʼre not satisfied with the program within the first 30 days (thatʼs a quarter of the program), just let us know — weʼll issue a full refund, no questions asked. We make this guarantee because we want GoingVC to be one of the most impactful professional development experiences youʼve ever had.

Members should expect to spend around 4-6 hours per week to get full value out of the experience.

The curriculum varies based on which track you select when you join the program. We have the flagship program track, which is all about learning the fundamentals of VC and breaking into the industry. Then, we have a track focused on Raising a Fund, which teaches you the fundamentals and also prepares members for raising their own fund. Thus, a select portion of the curriculum differs.

You can read more about our curriculum here.

Yes. Members will have the opportunity to join GoingVCʼs Investor Program, giving you direct experience with sourcing and evaluating deals.

GoingVC is fully virtual and designed to be accessible globally, with flexible recorded sessions so you can participate regardless of your location or schedule.

GoingVC is built for busy professionals balancing full-time jobs. While live sessions offer valuable real-time interaction with active VCs, theyʼre all recorded, so you can learn flexibly on your own schedule without missing out.

GoingVC is designed for professionals at all stages of their VC journey: from aspiring Analysts to Partners looking to deepen their skills. Whether youʼre just breaking in or advancing your career, the program offers valuable education, experience, and network support tailored to your needs.

GoingVC supports professionals from different backgrounds. Our comprehensive curriculum–live expert lectures, curated readings, case studies, and hands-on modeling–builds well-rounded VC skills. Combined with personalized mentorship, we help bridge gaps and prepare you to confidently break into venture capital.

Every session is recorded and available to view on your own time—on your computer or phone. Many participants complete the program asynchronously and still gain full value.