What are the risks associated with investing in a VC fund (*)? 

The honest answer is: significant. We invest at a very early stage. Sometimes it’s just an idea, not even a company yet. Of course, in the fund’s portfolio, we try to diversify the risk and invest in the next rounds in companies we already know and believe (so-called “follow-on” investments), which we have financially supported at an early stage. Guaranteeing success at this stage of the company’s development would be dishonest.

(*) According to the Act on Investment Funds and Management of Alternative Investment Funds (“Act”), ASIs (alternative investment companies) are classified as alternative investment funds (Article 8a(1) of the Act). This is the form in which we operate. For simplicity, we will use the shortened terms “fund” or “VC fund” in the following sections.