Qubit: CFA Primer on Alternatives
The CFA Institute published a good primer on alternatives back in 2018.
However, they seriously need to update its section on venture capital to include crypto, non-traditional investors, SPACs, SPVs, and more.
“Venture capital is simply investment in small firms with the hope that the firm will thrive and mature to the point of going public (i.e., using an initial public offering, IPO, to become a publicly traded firm) or that the firm will be acquired by a large firm. Each individual venture has a payoff somewhat like a lottery ticket—that is, a large probability of loss of most or all of the investment and a small probability of a huge payoff. Most institutions obtain access to venture capital through venture capital funds, a type of private equity fund that specializes in these small, undeveloped firms. In venture capital, investors or investment managers usually play an important role in assisting the management of the enterprises and not just in contributing capital.
Venture capital differs by industry, time of inception (vintage), geographic location, and stage of development and financing. Venture capital firms typically begin with noninstitutional funding (often provided by entrepreneurs or by so-called angel investors, such as friends, family members, and wealthy investors interested in such firms). If the firm shows promise, financing may progress to the seed capital stage at which time institutions often provide financing through private equity firms. Financing rounds may continue with additional investment during first or early stages, second or late stages, and so forth through to the exit into public markets through an IPO.”
Source:
Alternative Investments: A Primer for Investment Professionals
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