Why new VC funds offer the greatest opportunities in Venture Capital

It's too difficult to develop an investment track record If you aren't independently wealthy or a part of existing homogenous VC networks. Additionally, fund of fund data shows that emerging managers outperform compared to legacy funds. Our industry should be reimagining ways to boost returns via expanding the pool of qualified investors. Emerging ... See more

A capital allocator would need to have two things happening simultaneously.

1. Limited fund size: The fund would need to be $150M or less, or otherwise, you’ll be back to being wholly subject to the power law.


2. Equity optionality: Investors in a startup utilizing this product need to be able to get returns even if the outcome is smaller. That would req

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What are we left with? Investing for emotional reasons. Or for reasons that cannot be supported by data. This is likely to be difficult for bigger funds with more institutional decision-making processes managing more AUM. Gut feel is easier for angels, micro-VCs and maybe solo-GPs. Emerging managers to tend to outperform peers in terms of returns, ... See more