Venture Capital
What is a venture capital investment fund?
5 min read · 11/05/2026
How does a venture capital investment fund work?
Venture capital investment funds channel the capital they raise from investors into companies with growth potential, by taking stakes in them. The fund provides capital to those companies and is managed within its investment strategy and the applicable capital markets regulation.
The fund is managed by a portfolio management company; choosing the companies, valuing and monitoring them and, in time, exiting the investment are all part of that process.
- Investor
- Fund Structure
- Portfolio Management
- Portfolio Companies
- Value Creation and Exit
What can a venture capital fund's portfolio hold?
A venture capital fund's portfolio consists mainly of shares in unlisted companies at a growth stage. Depending on its strategy, a fund can invest in early-stage or growth-stage companies in sectors such as technology, agriculture, industry or services.
Every fund focuses on different sectors and company stages, so it is worth reading the fund's investment strategy and its current portfolio companies.
The main differences between a venture capital fund and investing directly in a company
Venture Capital Investment Fund
- Professional fund management
- A portfolio spread over several companies
- Institutional valuation and reporting
- A stake held through a fund structure
Direct Company Investment
- Direct ownership of shares in one company
- Investment and monitoring decisions taken by the investor
- Company-specific risk carried alone
- Investment company by company
Who can invest in venture capital funds?
Participation units in venture capital investment funds are offered to qualified investors as defined in the applicable capital markets regulation.
Because the definition of a qualified investor and the conditions of investment can change with regulation, it is important to read the fund's current official documents and the relevant rules before deciding to invest.
Check the current conditions.
For investor eligibility and the conditions of participation, read the fund's current issuance document and its official papers.
What should you look at when assessing a venture capital fund?
Venture capital is a long-term investment and value takes time to build. So a fund should be judged not only on its periodic return but on its strategy, the sectors and stages of its portfolio companies, its term, its fees and its risk profile together.
How the portfolio companies are valued and how the fund plans to exit its investments also matter for understanding where the fund stands.
Which documents can be read about a fund?
The most reliable sources on a fund's investment structure and current position are its official fund documents.
Issuance Document
The fund's investment strategy, governing principles and the conditions that apply to investors.
Fund Bulletin
The fund's current portfolio and its developments over the period.
Financial Reports
The reports carrying the fund's periodic financial information.
Valuation Reports
Valuation information for the real estate held in the portfolio.
KAP Disclosures
Official public disclosure announcements relating to the fund.
Investor Centre
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This content has been prepared for general information purposes and does not constitute investment advice. Before making an investment decision, the fund's current official documents and the investor's own circumstances should be assessed.
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