India, Feb. 15 -- This article is part of our 10-part series, Insider Secrets: What LPs Must Know to Invest in VC Funds in India, where we decode key insights for navigating this asset class with confidence.

For Limited Partners (LPs), diversification is a critical strategy to mitigate risk and enhance long-term returns in venture capital (VC) investing. A well-diversified portfolio reduces exposure to single-point failures while capitalizing on multiple opportunities. This chapter explores key diversification strategies, portfolio construction approaches, and how LPs can optimize their exposure across sectors, geographies, and investment stages.

The Importance Of Diversification In Venture Capital

Venture capital investments are inher...