Since venture investment clubs are a new development we can only look at comparisons.  Generally investment clubs outperform average investors and good venture capitalists get the highest returns.   Also, investments in smaller companies outperform investments in larger companies, and early stage investments do better than later-stage financing.

   The factors associated with better returns generally involve higher risks or other disadvantages, such as lack of liquidity.   None of the factors by themselves mean much, except that it is important to invest using a sound methodology and do the homework.

    A final point to make is that the Internet is changing the rules in favor of self-directed investors by making better information widely available and improve performance monitoring.

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    If you have any questions or would like to be a venture investment club coordinator, please email . (Click on link.)

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