Why Venture Capital?
Venture Capital generates significant value for shareholders
Annualized performance of Private Equity vs Public Markets
Source: Cambridge Associates
Private equity has historically outperformed listed equities - and has done so over a long period of time.
Lower volatility compared to other asset classes
Annualized return vs volatility
Source: Moonfare
In the past, private equity has generated similar returns to emerging market equities and higher returns than all other traditional asset classes. The relatively low volatility combined with the high returns ensures a convincing risk/return profile.
Alternatives can contribute to the performance of a portfolio
Expected risk / return portfolio profile
Source: Neuberger Berman
The effect of private equity in a portfolio depends - as always - on the portfolio itself. However, a Pantheon study from 2015 suggests that the addition of private equity to a pure public equity portfolio can generate an annualized excess return (“alpha”) of 3.16%.
Low correlation to public markets
Correlation between PE and public markets
Source: Capdyn
Because venture capital investments take a long-term approach to capitalizing new companies and developing innovative business models, they generally do not have high correlations with public equity funds, making them a desirable diversifier in investment portfolios.
Why partner with us?
Focused investment thesis
Seed X follows a very focused investment thesis in Fintech, Insurtech and Proptech. Historically, specialized venture capital funds have outperformed generalist VCs. A focused investment thesis allows us to make better investment decisions by fully understanding the market drivers and trends.
Track record
With nearly 30 investments, 80+ co-investors throughout Europe and a second fund in the investment phase, Seed X has built a strong track record in creating shareholder value.
Strong team
We are a strong and experienced team of founders and operators, capable of investing in and supporting exceptional startups.
Strong Governance
Bankable financial product with ISIN number
Quarterly NAV calculation and professional investor reporting
Fund management by VP Fund Solutions, audit by Grant Thornton
Regulated by the Financial Market Authority of Liechtenstein
Our strong governance and regulatory set-up has already convinced institutional investors such as corporate investors, family offices, wealth managers and multiple pension funds