The Partnership - AVC

First, most venture capital firms use antiquated business models that prevent them from being able to move quickly, reach scale, and establish strong competitive moats. Most venture firms are built on a partnership model, like law firms.

GP partnerships are highly time and attention constrained, making them the opposite of scalable. Most processes are run manually, and there is rarely much use of software or automation to help source, assess, or execute deals.

One of the most important things a General Partner (GP) needs to consider early on when starting a venture fund is their portfolio construction strategy. Portfolio construction will impact nearly every aspect of running a fund, including return performance. 

But what could a future-proof venture firm look like if it was built from scratch? These are the most common ideas that have come up in my conversations- Visionary leadership- An org chart that reflects value-creation- Product-led value proposition- Incentivizing collaboration and apprenticeship internally- Intellectually honest decision making

Brand is arguably the only thing that resembles a moat in traditional venture capital. The venture capital flywheel archetype is pretty simple: pick and invest in great companies and founders, support those founders and companies, and over time those founders and companies, particularly if they are successful, lead to more deal flow and better acce... See more