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Venture capital myths and realities29/03/2006. Source: IMD . Dr. Benoit Leleux 
 Venture capital requires some very special skills and competences says, Dr. Benoit Leleux, the Stephan Schmidheiny Professor of Entrepreneurship and Finance at IMD. It is not about portfolio allocation, diversification, picking projects, managing risk exposure, etc. It is about managing growth, technology and people, one project at a time.
The industry has just gone through a serious crisis and is still learning. There are only so many startups that meet the VC criteria and access to money is not a competitive advantage for funds. Funds still need access to technology and growth management competences. A bigger fund is not always better.
In many non-US markets, the key to bottleneck is exit markets rather than entry and capital. The industry restructuring is on-going, but innovation has never stopped. It is in the times of crisis that one will find the best opportunities. The market, like nature, hates vacuum.
Leleux lays out his presentation as follows:
- Venture Capital (VC) versus Private Equity (PE)- Understanding the playing ground
- Why Invest in VC/ PE… or why Not?- Getting the expectations right
- How Serious is the 'Correction', Really? - Hundred year flood or teething problems? Availability of capital or expectations unmet?
- What Can We Learn from the Past to Get it Right this Time? - Impact of size
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