Weekly Buzz: How to invest like a venture capital fund

5 minute read

AI is minting billionaires in what CNBC calls the biggest wealth creation spree in recent history. Last month, OpenAI raised US$40 billion in a funding round led by SoftBank. Last week, Nebius stock surged 60% after announcing a US$19.4 billion AI infrastructure deal with Microsoft. It’s the kind of explosive growth that transforms companies overnight, and you don't need Silicon Valley connections to participate. Thematic funds let you invest in these breakthroughs without the need for exclusive access.

Backing the next big shift

Venture capital funds back startups with the potential to transform industries and capture long-term value. Thematic investing applies this same logic to public markets. Instead of backing individual startups, you buy into entire technological or economic shifts through ETFs.

The global autonomous driving market, for example, is projected to reach US$668.6 billion by 2033. Waymo now provides more than 250,000 fully autonomous paid rides per week. Rather than trying to pick the next winner, you can invest in the whole ecosystem: the chipmakers powering the AI, the smart battery manufacturers, the cloud infrastructure providers.

This approach captures value across the broader AI ecosystem, a market projected to hit US$1.8 trillion by 2030. In healthcare, Google's AI system for breast cancer detection shows 94.5% accuracy, while Mastercard's AI fraud detection system doubles the speed of identifying compromised cards. When breakthrough technologies reshape entire industries, concentrated exposure can generate returns that complement traditional diversification.

What does this mean for you?

Thematic investing lets you participate in the megatrends over a longer time horizon, but it isn’t a shortcut to easy returns. Thematic funds can be more volatile, and hype cycles can run ahead of profits. Some themes flame out, while others take years to deliver.

Smart implementation means treating your thematic positions as if they were venture investments within your broader portfolio. Keep your core globally diversified across stocks, bonds, and other assets, then add smaller allocations to the themes you believe in.

(Want to invest in the companies driving these AI breakthroughs? Check out our Technology Enablers Thematic Portfolio.)

Investor’s Corner: The world’s clean energy is made in China

China has become the world's clean energy factory. Chinese firms now make about 80% of the world’s solar panels and 60% of wind turbines. When governments announce climate targets, they're often buying Chinese technology to meet them.

On the homefront, Beijing poured US$625 billion into clean energy in 2024 alone, roughly a third of global spending. That’s doubled the country’s wind and solar capacity since 2021 and tripled its battery storage. This isn’t just an environmental shift, it’s an economic one: costs are falling, adoption is accelerating, and for now, China dominates the supply chain.

For investors, this buildout signals where capital is flowing globally. Countries face a choice: import from China or build domestic alternatives. Either way, investment in clean energy is ramping up. That means opportunities not only for Chinese exporters, but also for global manufacturers and suppliers positioned along these supply chains.

(Looking for exposure to the clean energy buildout? Our Environment and Cleantech Thematic Portfolio captures this transformation.)

Simply Finance: Exchange-traded fund (ETF)

An exchange-traded fund is a basket of investments that you can buy and sell on a stock exchange, like a stock. Each ETF holds a mix of assets, often dozens or even hundreds. They can track broad markets such as the S&P 500, specific regions like emerging markets, or themes such as clean energy. They've become especially popular with individual investors because they offer instant diversification at low cost.

In the Press

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