Venture capital investment vehicles could be among the most profitable for opportunity zone investments. Venture capital has the potential to deliver the original investment multiple times over. As a result, venture capital could deliver the highest returns of any other opportunity zone investment.
"This investment type requires an entirely different subset of skills and is typically best suited for experts in targeted industries or seasoned venture capitalists. However, venture capital investing is known for some of the most eye-popping returns," Braden Crockett, VP and director of opportunity zones at Matthews Real Estate Investment Services, tells GlobeSt.com. "With so much riding on the size of the gain after a 10-year hold, this investment vehicle has the potential to deliver the highest returns out of any other opportunity zone investment. Imagine investing as a seed investor in tech darlings like Uber, Facebook, or Google had operations located within qualified opportunity zone."
As with any investment, there is an upside and downside to leveraging venture capital. The return profile is most certainly the upside of using venture capital for opportunity zone investments. "Potential to earn your original investment multiple times, ranging from 100% to 76,000% returns for early investors," says Crockett.
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