Image for 3. Investment Portfolio Management in Venture Capital

3. Investment Portfolio Management in Venture Capital

Investment portfolio management in venture capital involves selecting, monitoring, and balancing a group of startup investments to maximize returns and manage risk. VCs diversify their investments across multiple early-stage companies, understanding that some will succeed and others may fail. They actively track each company's progress, adjust their holdings as needed, and sometimes provide support to increase chances of success. The goal is to create a well-structured portfolio that leverages high-growth potential while mitigating losses from unsuccessful ventures. Effective management helps venture capitalists optimize overall performance, balancing risk and reward in their investment strategies.