Why venture capital unlocks access to next-generation market leaders

VENTURE capital has long occupied an ambiguous place in portfolios. It attracts attention through unicorns and stories of exponential growth, yet is often treated as peripheral because outcomes are volatile, dispersion is extreme, and cash flows are slow.

This view is increasingly misaligned with how value is created in the modern economy. Over the past two decades, value has often been generated earlier in the life cycle of a company and increasingly in private markets.

Investors who only hold public equities and buyouts may therefore be structurally late to important innovation cycles.