For private investors, investments in start-ups are associated with certain risks.
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Frankfurt. Hardly any asset class is as closed to private investors as the venture capital market (VC), i.e. equity investments in fast-growing, young companies (“start-ups”). The segment is dominated by institutional investors such as pension funds.
However, the alternatives for private investors are becoming more common, and the offer has been democratized for several years. There are basically four ways for investors to enter the VC landscape – via shares in listed venture capital companies, VC funds of funds and platforms, shell companies (spacs) and direct investments in start-ups.
1. VC shares
The absolute heavyweight among venture capital stocks is certainly the Softbank Group. Softbank’s so-called Vision Funds are invested in hundreds of companies, and the first fund, worth almost $100 billion, bought into 92 mega-startups such as the mobility service Uber.
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