I am particularly interested in healthcare, medtech and biotech startups in developing countries but I struggle to understand how specialized funds can minimize the risk of industry exposure. As an example, here in Brazil, the private healthcare system is at a record low, which in turn makes the entire industry struggle financially. How to minimize the risk on an industry performing bad when you are not diversifying sectors?
Venture Capital is a RISK asset class and a very optimistic style of investing. The objective of venture capitalists is to fund category defining startups, and by definition, it's really difficult to spot these companies if one is bearish on the future prospects of the market. In other-words, venture capital is the R&D finance vehicle for the innovation of the future.
How to build a VC fund model: https://govclab.com/2022/05/05/how-to-build-a-vc-fund-model/
How to build a VC fund model: https://govclab.com/2022/05/05/how-to-build-a-vc-fund-model/