Funds-of-Funds: Key Attributes

Swan Ventures specializes in funds-of-funds investments, providing a diversified alternative to direct venture capital investing.

Access

Funds-of-funds are often used by investors as an entry point into top-tier venture funds to which they otherwise would not have access.

Diversification

High variability in venture capital investments makes diversification a key strategy for many investors to mitigate risk and provide more consistent returns.

Performance

Due to the high dispersion of returns within the venture space, funds-of-funds often outperform direct venture investing, even when accounting for higher fee structures.*

Operational Efficiency

Managed funds provide a streamlined alternative to investing directly in venture funds, including reducing the number of capital calls and providing consolidating reporting.

* According to data from Vanguard and the Journal of Financial Economics