Venture Capital Firms, BBC, Bj Chatterjee discussed on Marketplace Tech with Molly Wood - 10/19/2017: How venture capital gets its funding

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Seat venture capital firms raise of fund which is a pool of money that they'll used to invest in companies over a defined period a limited partner commits money to that fund or of course more than one and hopes for a good return on the investments that the bbc's make these lps come in three general buckets private pensions public pensions and endowments and foundations here's bj chatterjee again but as an opportunity said you know i have to admit that venture is our poorest performing class within private markets the whole i pension plan has a little over a hundred and fifty million dollars invested in venture capital funds that's about twelve percent of its private market investments over all so it's a very small amount of the total pool the pension fund is investing and even that amount is on the decline part of the reason if you're not with the big guys you're not hitting the jackpot is often peter asher is director at pitch book a research and data firm that studies private markets and venture capital there's a very broad disparity between the top deaths i'll funds like sequoia andriessen of their ability to persistently return outsiders returns to their investors and then there's there's everybody else chatterjee says the hawaii pension fund doesn't have those relationships with big firms partly because it's actually quite small but jagge deep saying bacher does he's chief investment officer at the university of california for the whole system that is big we started investing in venture capital in nineteen 72 of that actually.

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