First Close Partners reposted this
LP Tip: #16 of #50: Less is more when it comes to executing on Fund I. ➡️ This post is aimed at those without any prior investing experience at an institutional venture fund. A common mistake first time managers often make is trying to do a lot in their first fund. I expect that the first fund will be small so you have limited resources and must be laser focused on doing a few things well. Do you genuinely think it is possible to prove out access, picking, ownership, managing reserves, brand building, etc. to LPs in Fund I? In my experience I think that is very hard to accomplish. There are probably two or even three things that one has an opportunity to prove out. My expectation is that the first fund will be a prototype or a Minimum Viable Product (MVP). Similar to building a startup the manager/s will go in with hypotheses they are trying to validate and then gather feedback to make minor iterations on the future product which in this case is Fund II. ➡️ What are you trying to prove in fund I? Tomorrow, I will share more on how I think about access.