Seed VC funds that refuse to be the first money in are so tiresome. Have some conviction and place bets you believe in. That’s your job.
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That might be the case but timings matter here. You won't be able to prove you were right until much later. Unless you're the largest capital contribution in your fund, showing that you can get into competitive deals lead by top funds *is* the signal that most LPs look for
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A pension fund does *not* want to hear that you are putting the first money into a risky project. They want to hear that you got into a deal lead by Sequoia because it's name both their team and their capital sources recognize.
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All this de-risking of what is essentially 100% risk leads to overpaying for deals, which creates more risk. Maybe I am a little slow. I just don't get it.
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It makes more sense perhaps if you look at VC fund portfolios over time. People often start off narrow, following deals etc.. Then once they can prove performance and LPs trust them more they branch out into riskier projects. At the end of the day, it matters who your LPs are.
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I like
@ArlanWasHere approach - find LPs with strong conviction, invest with strong conviction. The jury is still out on how her fund will do, but I am rooting for her.
End of conversation
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