While returns are potentially high, risks are high too, and you must have holding power
Investing in a venture capital (VC) fund is not for the average retail investor because while returns can be high at about 20 per cent or more a year, the risks are high too.
The minimum investment amount is usually $1 million for individuals and the gestation period about eight to 10 years. The illiquidity of VC investments means that investors must have holding power and there is no guarantee that the fund will succeed.
But if you have spare cash and wish to increase your wealth while helping other firms to grow, the VC fund is a viable asset class to consider.
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