Why new VC funds offer the greatest opportunities in Venture Capital

Third, most emerging fund managers do not have to worry about succession plans or manage an existing brand and track record. They can be focused on deliverying on their chosen strategy,

Second, emerging fund managers tend to be made up of a smaller group of GPs or solo capitalists with strong industry insights and personal brand in a specific industry or trend, often when this is still nascent and overlooked by the established players.

First, most emerging firms raise small funds. Smaller funds generally outperform, as they can participate meaningfully in early rounds and a single outlier has the potential to generate strong fund-level performance, even if the fund is only able to garner modest ownership.

1. young funds invest particularly early2. emerging VC focuses on trends at early stage3. new fund managers have different work experience

In Europe, investors in first-time funds have a higher chance of exceptional returns. But why is that?