A Year Of Misplaced Fear (And Why It’s Time For Investors To Leave The Crowd)

Many venture capital LPs have reacted to recent economic uncertainty by concentrating investments in megafunds, mistaking perceived safety for better returns while potentially sacrificing the higher upside that venture investing is meant to deliver. In this guest commentary, Sara Zulkosky, co-founder and managing partner of Recast Capital, contends that smaller emerging VC managers are a more attractive source of long-term returns for investors willing to look beyond the crowd.