Myth 1: Venture Capital is Inaccessible to New Investors
A prevailing belief is that top-tier venture capital funds are closed off to new investors. While some elite funds may be selective, a significant portion of high-performing funds welcome new capital.
According to Cambridge Associates, “We expect private investment performance to improve, as the impact from overinvestment in 2021–22 recedes. The asset class’s long-term performance should continue to attract individual investors and managers are creating pathways for them to more easily access opportunities.”1 This indicates that access to quality VC investments is more attainable than commonly perceived.
Myth 2: Only Established VC Firms Deliver Strong Returns
It’s often assumed that only long-standing, well-known VC firms generate substantial returns. However, emerging and newer firms have made significant contributions to value creation in the VC space. A study by The VC Factory indicates that “emerging VC fund managers have historically outperformed established peers, with higher median Internal Rate of Return (IRR) since the late 1990s.”2
Myth 3: Venture Capital is Concentrated in Silicon Valley
While Silicon Valley has historically been a hub for venture capital activity, the landscape has become more geographically diverse. Innovative startups are emerging across various regions, offering lower operational costs and access to talented workforces near reputable universities. According to PitchBook, many promising VC-backed companies are being built outside of traditional tech hubs, with investors increasingly diversifying their geographic focus.3
Myth 4: Venture Capital is Exclusively for Tech Startups
It’s a widespread belief that VC funding is only available for technology-focused companies. In reality, venture capitalists invest in a wide range of industries, including healthcare, biotechnology, clean energy, and consumer goods. The key factor is the potential for high growth and significant returns, regardless of the sector.
How Dickson & Main is Opening Venture Capital to Accredited Investors
While venture capital has historically been limited to large institutional investors, Dickson & Main is changing that by providing accredited investors with direct access to high-potential companies emerging from the University of Arkansas innovation ecosystem. Dickson & Main carefully curates investments in emerging and growth-stage companies, leveraging deep industry expertise to identify firms poised for success. Our approach allows investors to participate in an asset class that has consistently delivered outsized returns while navigating risks with a disciplined and diversified strategy. As venture capital continues to evolve, firms like Dickson & Main are breaking down barriers, allowing more investors to capitalize on the innovation economy.
By debunking these myths, accredited investors can approach venture capital with a more informed perspective—recognizing the diverse opportunities and considerations inherent in this dynamic asset class. If you’re ready to explore venture capital investing with a partner that understands the needs of accredited investors, learn more about Dickson & Main today.
.jpg)
