Big ideas - big returns?

At the 2013 SuperReturn International conference in Berlin, Nils Rode, Co-Head of Investment Management at Adveq spoke about how the leading global companies of tomorrow are being created every year and how venture capital renews the corporate landscape, helping institutional investors generate performance for their portfolios.

Some of the takeways:

  • New companies can grow to a significant size in a relatively short period of time and they contribute to a continuous renewal of the corporate landscape
  • Reaching a significant market capitalization used to take a century. It takes years to decades today. We believe the renewal process of the corporate landscape is poised to accelerate
  • Since the 1970s information technology companies have dominated the creation of new firms and this trend has continued well into the 21st century. A new sector may be taking its place in the foreseeable future
  • Business cycles do not seem to affect successful exit rates for successful companies being created each year
  • Adveq research shows that while 20% of new companies generate 80% of their exit value the top 2% of all new companies represent 25% of the total exit value

 

Companies based on big ideas can indeed create big returns for investors. The full transcript can be downloaded in PDF format here.

More than a third of the Top-100 companies* globally are less than 40 years old