An investment time horizon is the length of time that an investor expects to hold an investment before selling it.
This can vary depending on the individual investor and the specific investment being made. For example, some investors may have a very short-term time horizon, such as a few days or weeks, while others may have a longer-term horizon, such as several years or even decades.
The investment time horizon is important because it can affect an investor's risk tolerance and their investment strategies. Investors with a longer time horizon may be willing to take on more risk in their investments, as they have more time to recover from any potential losses. On the other hand, investors with a shorter time horizon may be more conservative in their investment approach, focusing on safer, more stable investments that are less likely to fluctuate in value.
Venture Capital as an asset class usually falls within the long-term time horizon. This is important to factor in when developing an investment strategy that includes Venture Capital, as it can help investors to align their investment goals with their risk tolerance and time frame for achieving those goals.