This edition of Allocator One's Annual Industry Report explores how the integration of data analytics and advanced technology is transforming the landscape of Venture Capital fund management in 2024. By examining case studies and industry data, the study highlights best practices and the impact of technology on fund performance.
Key Findings
Outperformance: Funds managed by FTFMs have historically delivered 3x+ higher returns over a 10-year horizon compared to their larger counterparts. This trend is amplified during downturns, with recession-era funds achieving 15%-30% higher returns.
Entrepreneurial advantage: 72% of FTFMs come from entrepreneurial or startup backgrounds, equipping them with unparalleled insight into emerging trends, cutting-edge technologies, and founder networks.
Small fund superiority: Smaller funds (<€50M) outperform consistently, with 44% of top-performing funds coming from this category.
Barrier reduction: Platforms like Allocator One are dismantling traditional barriers, offering streamlined fund setup, reduced costs (by up to 90%), and access to a curated network of LPs and mentors.
