Venture Capital Is New Buzz Word for Australia's Pension Funds

The video discusses the evolution of Australia's pension funds towards venture capital investments, highlighting the potential for high returns despite significant risks. It examines the impact of these investments on Australia's VC and startup sectors, noting the shift in capital raising strategies and the involvement of institutional investors. The discussion includes examples of IPOs like WeWork and Uber, illustrating the volatility and risk associated with such investments.

What is the expected annualized return for the Melbourne fund over a 10-year period?

• 20%

• 25%

• 15%

• 10%

Why are pension funds interested in venture capital despite the risks?

• They are required by law to invest in startups.

• Venture capital is less risky than bonds.

• Venture capital guarantees fixed returns.

• They have a mandate to achieve returns above inflation.

What happened to Uber's stock price after its IPO?

• It increased by 18%

• It remained stable

• It dropped by 18%

• It doubled in value

How long did it take for the Australian startup Prosper to recover its IPO price?

• Immediately

• Ten weeks

• Five weeks

• One week

What advantage do VC funds gain by tapping into pension funds?

• They can eliminate competition.

• They can diversify their funding sources.

• They can guarantee returns.

• They can avoid all risks.