Some large, really large institutional investors (like pension funds and endowments) invest in venture capital funds using an indirect investment approach. They pick an intermediary - a Fund-of-Funds - as opposed to investing in VC funds directly.Now the obvious question is why do smart, institutional investors bother adding a layer in this mix? After all, they could bypass this step and invest in VC Funds directly. The fund-of-funds model (FoF) emerged in the late 1980s to meet the asset alloc...
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