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Is venture capital becoming less attractive? CIO managing $90B weighs in

VC10X · LP10X - Advising $90 Billion in Institutional Capital -...

“Do you see that the attractiveness of the venture capital as an asset class has reduced over the past two, three years?”

0:21 / 0:40

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higher risk appetite. Do you see that the attractiveness of the venture capital as an asset class has reduced over the past two, three years? It is a power law game where you're you're trying to get a couple of home runs and and and that fundamental character hasn't changed. The question that I get asked probably more than any other is, is this 1999 and we're about to have a major correction?

About this clip

Nolan Bean, CIO of FEG Investment Advisors, discusses whether venture capital's appeal as an asset class has diminished in recent years. He acknowledges that while VC remains fundamentally a power law game focused on hitting home runs, the big question investors are grappling with is whether we're headed for a 1999-style correction.

Why this clip

A seasoned institutional investor with $90B under advisement directly addresses the critical question on every LP's mind about VC's current attractiveness and potential bubble conditions.

0:21 - 0:4020smarket insight
venture-capitalmarket-correctioninstitutional-investing

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What they said next

It was overcapitalized in 2020 and 2021. You saw a lot of specs. The last four or five years have been kinda rough. It's starting to reinvigorate and just the innovation and the science, as well as being able to use technology and AI from an RD perspective is pretty interesting.

22:58 - 23s · Consequences

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It was overcapitalized in 2020 and 2021. You saw a lot of specs. The last four or five years have been kinda rough. It's starting to reinvigorate and just the innovation and the science, as well as being able to use technology and AI from an RD perspective is pretty interesting.

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