Closing a 350M Euro fund is impressive, and I think it’s still a bit tough.

But Sarah at TechCrunch; even though the crisis is global, think about the fact that there is always big volume of funds from Pensions funds, and other sources that are to be invested for returns in the long-term. Part of these big institutional capital goes into VC funds, and to make a return in 5-10 years. Long beyond the current financial crisis, and also what are the alternative investment targets for that institutional capital?

Most of these institutions operate on a model where the capital is placed in to different “baskets” with different risk ratios (or a similair model), and the index venture fund is probabally interesting for one of these risk ranges. Also in these times a lot of alternative investments are quite insecure (even though cash seems secure it is gives an extremely low return, through interest rates, and is quite volatile, just ask people holding Swedish crona, SEK the past few months).

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