Matthew Pellini, Managing Director, Secondaries, Co-Head of Venture Capital & Growth Equity, Hamilton Lane
Hamilton Lane recently published Venture Capital: A Gateway to Innovation. Today, venture capital-backed companies have the potential to grow faster and remain private longer than they did a decade or two ago. Investors holding only publicly traded technology companies are missing a large part of the investment opportunity, as private US technology companies outnumber listed technology companies by about 700,000 to just 501[i].
The characteristics of venture capital are changing, as VC activity has largely focused on AI companies since 2024. AI companies are scaling multiple times faster than software-as-a-service companies, by some measures over three times faster. At the same time, fundraising for venture capital funds has slowed since 2021, potentially leaving fewer investors competing for these innovative firms.
In traditional drawdown funds, venture capital managers typically focus on either early-stage or late-stage companies. The early-stage companies have significant upside potential but tend to have a higher level of risk associated with them, as many are pre-revenue. Later-stage companies have significant revenue and more predictable growth but may have lower return expectations given their lower risk profile. In 2024, over 60% of venture capital investments were made in later-stage companies[ii].
Investors today can access venture capital through semi-liquid evergreen funds, which offer potentially greater liquidity than traditional drawdown funds while requiring a much lower minimum investment. Rather than investing in a traditional closed-end venture capital fund structure with a long fund term, capital called down over time, and a higher minimum investment, investors may wish to allocate to a diversified, semi-liquid fund structure with more investor-friendly terms.
Hamilton Lane’s Venture Capital and Growth Fund is an evergreen fund that primarily focuses on North American technology and tech-enabled companies, but will also invest opportunistically across Europe and additional global exposure. The fund is highly diversified across venture and growth secondary and direct equity co-investment interests, while investing across the lifecycle of early, expansion, and late-stage companies, as well as growth equity. This mix can potentially enhance diversification, provide access to leading GPs, and balance the relatively higher risk of earlier-stage investments with the strong performance, shortened duration, and increased liquidity of later-stage investments. Access to leading venture capital opportunities is driven by Hamilton Lane’s track record and long-standing history of investing in the venture and growth space, with ~$115bn in VC/growth assets under advisory and maintains relationships with over 260 VC/growth managers[iii].
[i] Source: Cobalt, CapIQ, CompTIA 2024 Tech Workforce, U.S. Department of Commerce (January 2025)
[ii] Hamilton Lane’s VCG Pitchbook, December 2024
[iii] As of 3/31/2025
Disclosures:
Investors should carefully consider the investment objectives, risks, charges and expenses of the Hamilton Lane Venture Capital and Growth Fund before investing. The prospectus and, if available, the summary prospectus contain this and other information about the Fund. You may obtain a prospectus and, if available, a summary prospectus by calling 1 (888) 882-8212 or visit our website at www.hamiltonlane.com/vcg. Please read the prospectus carefully before investing.
An investment in the Fund is generally subject to market risk, including the loss of the entire principal amount invested. For a complete description of the Fund’s principal investment risks, please refer to the prospectus.
Diversification does not guarantee a profit or protect against a loss in a declining market.
The information provided here is for informational purposes only and investors should determine for themselves whether a particular service or product is suitable for their investment needs. Investments in securities entail risk and are not suitable for all investors. Nothing herein constitutes or should be construed as an offering of securities or a recommendation to purchase or sell securities. Please refer to the disclosure and offering documents for further information concerning specific products or services.
PINE Distributors LLC is the distributor of the Hamilton Lane Venture Capital and Growth Fund. Hamilton Lane Advisors, LLC is the investment adviser to the Hamilton Lane Venture Capital and Growth Fund. PINE Distributors LLC is not affiliated with Hamilton Lane Advisors, LLC.
HMLAN- 5050363-01/26