Origins - Inside Venture Capital, Hosted by a GP and an LP
Franchise Funds: Is Being a VC Franchise the Ultimate Goal with Thomas Kristensen
Mar 11, 2025
Thomas Kristensen, a seasoned partner at LGT Capital Partners, shares his insights on the venture capital landscape with Bezer Clarkson. They challenge the notion of 'franchise funds' and discuss how GPs must continuously innovate instead of resting on past successes. The duo dives into what genuinely constitutes a successful fund and the importance of recognizing performance metrics. Additionally, they speculate on the evolving expectations for IPOs and the reasons why many founders shy away from becoming public company CEOs.
42:50
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Quick takeaways
- The podcast emphasizes that the term 'franchise fund' can be misleading, as true success in venture capital involves more than past performance.
- Building robust relationships between GPs and LPs is crucial for fostering trust and effective communication, which can guide better investment decisions.
Deep dives
Understanding Franchise Funds
The concept of a franchise fund is explored, highlighting its definition and criteria for recognition. A franchise fund is often understood to be at the peak of its performance and reputation within the venture capital industry. The discussion reveals differing perspectives on what constitutes a franchise fund, emphasizing that many LPs may have varying opinions on this classification despite working in the same field. This distinction is crucial as it underscores the nuanced nature of evaluating and categorizing venture funds, indicating that success is not solely defined by past performance.
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