I posted a while ago my syllabus on how to manage and invest a VC fund. As a prequel, here are some of the resources I’ve found helpful in launching a new fund: What it takes to start your own venture capital fund Strategic Considerations For Start-Up Private Equity Fund Managers Fundamentals Of Private Equity...
[Continue Reading]The investment committee rejected you; what does that actually mean?
One of the most common ways a venture capitalist rejects you is a variation of, “I love you, I love your company. I brought it up to the investment committee (“IC”)….but they turned it down.” What does that actually mean? Is this the business equivalent of telling a flame, “It’s not you, it’s me”? A...
[Continue Reading]Why venture capitalists are investing in international startups
Why are more US VCs investing in international startups? Take a look at The Fortune Unicorn List: of the top 100 most valuable unicorns in 2016, 39 are currently based outside of the United States. While fundraising of US VCs has dropped slowly as a percentage of global limited partner allocations over the last decade,...
[Continue Reading]Limited partner due diligence on VC and private equity funds
As a VC, I have a standard due diligence list for companies I’m reviewing. Similarly, limited partner investors have their own due diligence standards. To summarize, as an allocator I’m looking to “Give ‘PEAS’ a Chance”: People, Execution, Alignment & Strategy. To raise capital from allocators, you first need a compelling cover email, to motivate...
[Continue Reading]How to scale a VC (or private equity) fund
Managers of VC funds typically want to grow their business aggressively, just like the founders we back. But, we normally have a clear ceiling on how high we can grow AUM, before hitting practical limits to deploying capital within the traditional VC model. My Partners at HOF Capital are younger than I am, which means...
[Continue Reading]How to get superior returns in venture capital
A friend of mine interviewed for a job with massively successful hedge fund manager Steven A. Cohen. My friend sat in the conference room, and Cohen walked in. He looked at his resume, and asked just one question: “What’s your edge?” My friend got the job because his answer was differentiated, credible, and backed up...
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