In the past thirty years, venture capital investing has become a multibillion dollar industry that is recognized as one of the country's primary sources of new economic growth. The principal reasons for this dramatic growth have been:
(i) the average rate of return that can be obtained on such investments, which we believe has surpassed the average returns of many other investment alternatives
(ii) the ability of the industry to prove that the high risks of loss inherent in investing in new and developing companies can be significantly reduced through investing in a number of companies in a balanced portfolio and through active management, utilizing the risk management and investment strategies proven successful, common to the industry.