I mentioned previously in my post Angel Investing groups or independent about sharing more details on how I came to view portfolio design for myself and investors I work with. I shared some of the lessons learned and insights from past Seattle angel conference investments, I shared details on investing in groups, and here I share a little of the research I have been reading on returns of private companies.
Here is a paper by SharesPost that looks at data from the past three and a half years and shows that private growth companies returns satisfy the requirements of low correlation to traditional asset classes and the potential for outsized returns. Granted it is from SharesPost, a marketplace for buying/selling shares of private companies… but it is interesting nonetheless..
Research Brief – Private Growth Company Investing 2013
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