LA Fund's Core Portfolio
Reasoning: Adopting a concentrated portfolio construction model is one strategic choice that sets our small fintech venture funds apart. This laser-focused approach emphasizes selecting a limited number of high-potential investments over casting a wide net.
A key advantage of a concentrated portfolio construction model for small fintech venture funds is the ability to perform in-depth analysis and due diligence on each selected investment. In contrast to spreading investments thinly across numerous opportunities, a focused approach allows fund managers to thoroughly assess each investment's viability, potential, and risks. This level of scrutiny significantly enhances the chances of making informed and successful investment decisions.
Fintech is a rapidly evolving sector with a multitude of niches and subsectors. Embracing a concentrated portfolio construction model enables small venture funds to target specific areas within fintech that align with their expertise and vision. By focusing on a few investments, funds like ours can strategically position themselves to capitalize on trends and technologies with the highest growth potential, ensuring their resources are dedicated to ventures that align with their long-term goals.