The EIF is the largest fund-of-funds in Europe with 180 venture capital fund investments. It encourages good risk management and pricing practices not only for its own portfolio, but also for the VC industry. Such practises require robust modelling of the venture capital funds. This paper should be seen as a contribution towards such a debate. It discusses the various modelling avenues and proposes a framework for a risk model for venture capital funds.
Article written in English by Dr. Tom Weidig (QuantExperts), consultant to the EIF.
Publication: Social Sciences Research Network