Viktoriya Tigipko is one of the most recognized names in the Eastern European VC community and is a native of Ukraine.
She runs TA Ventures, a pre-seed and seed stage VC, since 2010. Additionally she founded iClub (an angel network), WTech (a community for women in tech), and is Chair of the Board at the Ukrainian Startup Fund.
Guest Author: Viktoriya Tigipko
iClub was started in 2019 in the office of TA Ventures (TAV) because a lot of business owners and investors were asking us for advice as to whether they should invest in this or that startup.
This continued to increase and so eventually later on we decided to turn it into a club… iClub.
Now iClub is 1000+ angels in 40+ countries and growing.
iClub invests in 5-10 companies annually that are from seed to growth stage. Whereas TAV invests in 20+ early stage companies per year, which are only seed stage.
Generally iClub members select companies from TAV’s portfolio with the advantage being that TAV already invested and did the due diligence. So we like to say that iClub is ‘powered by’ TAV.
The geographic split works out to about ~60% US, ~20% Europe, and ~20% LATAM/MENA/SEA.
The club was designed to ‘democratize’ venture capital for entrepreneurs, business owners, and angel investors. The minimum ticket to invest is just $5,000.
So as we talked more with all of these investors over the years I have had a firsthand glimpse into how portfolio theory has evolved with market dynamics.
Let’s dive into what smart portfolio construction looks like in 2024, particularly regarding early-stage startups.
How should you think about portfolio mix these days?
Traditional portfolio theory suggests a 60/40 split between stocks and bonds, but that’s about as outdated as dial-up internet.
Modern portfolio construction has evolved significantly, with top investors typically allocating across six major categories:
- public equities (35-40%)
- bonds (20-25%)
- real estate (10-15%)
- commodities (5-10%)
- cash (5-10%)
- alternatives (15-20%).
Yale’s legendary endowment fund, managed by David Swensen until 2021, revolutionized institutional investing by pushing heavily into alternatives.
Their portfolio consistently maintained a 30%+ allocation to venture capital and private equity, generating an impressive 13.7% annual return over 30 years.
The most successful family offices I work with typically maintain a 15-25% allocation to alternatives, with about half of that going specifically to venture capital investments.
This approach has helped them capture outsized returns while maintaining sufficient liquidity.
What has changed recently?
The venture landscape has undergone a seismic shift.
In 2023, AI startups captured a staggering 48% of total venture funding in major markets – up from just 12% in 2020.
This isn’t just another trend; it’s a fundamental restructuring of the innovation economy.
The crypto winter of 2022-2023 taught us valuable lessons about diversification within alternative assets.
While many investors got burned on crypto-heavy portfolios, those who maintained a balanced approach to frontier tech exposure weathered the storm better.
Smart money is now treating crypto as one component of a broader innovation portfolio, typically limiting exposure to 3-5% of their alternative allocation.
How much should you invest in early stage startups?
For high-net-worth individuals, I typically recommend allocating 10-15% of their total portfolio to early-stage startups, either directly or through venture funds.
This provides enough exposure to capture significant upside while maintaining a responsible risk profile.
The math behind this recommendation is compelling: top-quartile early-stage venture funds have historically delivered 3-5x returns over 7-10 years.
However, this comes with a crucial caveat – expect zero liquidity for at least 5-7 years. The “J-curve” effect means your investments will likely show paper losses in the first 2-3 years before potential winners emerge.
Speaking of risk, let’s be brutally honest: research shows that about 75% of venture-backed startups fail to return investor capital.
However, the winners can win big – really big. A well-constructed portfolio of 20+ early-stage investments has historically had about a 95% chance of delivering positive returns, assuming professional due diligence standards.
Closing thoughts
Portfolio construction isn’t just about maximizing returns – it’s about optimizing for your personal risk tolerance and liquidity needs.
While early-stage startup investing can deliver exceptional returns, it requires patience, strong nerves, and most importantly, a properly diversified portfolio that can weather the inevitable ups and downs.
Remember: the best portfolio isn’t the one that could theoretically generate the highest return – it’s the one you can stick with through market cycles while sleeping soundly at night.
For most investors, that means treating early-stage startup investments as a powerful but carefully sized weapon in their overall investment arsenal.
Do you want to work with us?
There are a variety of ways of working with us. The easiest way is if you are considering angel investing then have a look at iclub.vc.
And join the 1,000+ angels that are already in our club.
iClub is backed by TA Ventures and is a great place to start for first time angel investors.
There is a simple form to fill out on the site and after being qualified you will have access to our exclusive deal flow.
If you’re interested in TA Ventures than you can see our team here and you can reach out to the person that you feel is most appropriate to your inquiry: https://taventures.vc/team/.
