We reveal our fund performances
Unveiling Our Performance!
In our latest newsletter, we aimed for transparency and provided an overview of our portfolio's performance (Note: Past performance is not indicative of future results). But first, let's revisit how a VC fund operates:
Venture capital follows a power law. By investing long-term, you will be rewarded: on average, to achieve a return higher than a 4% savings account, you need to achieve a return greater than 1.48x DPI on a 10-year fund. We are on track to achieve much more than this, with a gross IRR of 40% (calculated over the period 2017-2023).
Despite the inherent challenges of venture capital investment, we are proud to see our portfolio performing very well (see the chart in the newsletter) when compared to a large benchmark of over 11,000 companies backed by 259 funds raised from 1986 to 2018 (data from the UK fund of funds "VenCap International," investing in the US, Europe, India, and China):
👉🏻 Explosive Growth (5x to 10x return and beyond): Despite the youth of our portfolio, we already have companies with very high returns, including two centaurs and a unicorn.
👉🏻 Robust Potential (1x to 5x return): We have substantial growth opportunities with companies that have not yet reached a multiple of more than 5x. 74% of our portfolio is in this group and could join the double-digit multiples club.
👉🏻 Reduced Losses (return <1x): With only 18.4% of our investments having suffered a capital loss to date or that we have prudently written down even if the company is still operational, we are well below market figures (53.2%). This reflects a strong selection process and a risk management approach that minimizes the likelihood of investment loss through strong support for our companies.
To optimize performance, it is important to diversify investments, either by investing in numerous club deals or by investing in diversified funds like our OneRagtime Rhapsody II (Early-stage) and OneRagtime Paragon (Growth) funds.
Investors, join OneRagtime directly on our platform: https://lnkd.in/dGuFursA
Discover our performance and subscribe to the newsletter through the link in the comments 👇🏻
❗️Investing in unlisted assets, particularly venture capital, (i) carries a risk of total or partial loss of the invested capital and (ii) may be difficult or even impossible to sell, as they are very illiquid.
