2. Innovation financing and portfolio management
Despite a rigorous selection process, not all the companies we finance are successful in developing their innovations. The failure rate can even be very high among selected innovative companies. In order to manage this problem as effectively as possible, the seasoned venture capitalist generally seeks to build up a diversified portfolio of holdings within a venture capital fund, and to manage them according to a portfolio approach.
The causes of failure are multi-faceted, and any attempt to draw up an exhaustive list would be futile. However, experienced venture capitalists are well aware of certain causes of failure. They therefore strive to detect them during the selection process or, once the investment...
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Innovation financing and portfolio management