Origins - Inside Venture Capital, Hosted by a GP and an LP Fundraising as a Fund of Funds with Alex Edelson
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Sep 16, 2025 
Alex Edelson, founder of Slipstream Investors and a savvy LP, discusses the intriguing landscape of fund of funds. He shares insights on identifying hard-to-find, high-potential funds that could outperform established players. Alongside Beezer Clarkson and Nick Chirls, they delve into strategies for capital raising and the importance of empathy in GP-LP relationships. They also debate the impact of mega-funds on early-stage investments and navigate the challenges presented by today's volatile venture capital cycles.
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High Dispersion Makes Manager Selection Key
- Venture has the largest dispersion of returns of any asset class, making manager selection crucial.
- Small emerging funds often sit at the top of the return distribution but are hard to find, evaluate, and access.
Get Your Back Office Right First
- Build operational knowledge before starting a fund to reduce early mistakes and vendor friction.
- Set up legal, accounting, and back-office processes intentionally rather than copy-pasting a standard VC template.
Be Explicit About Fee Tradeoffs
- Be transparent with potential LPs about the tradeoffs of a fund of funds, including fee layering and when direct investing is better.
- Only sell Slipstream if the LP truly needs help accessing and selecting top small funds.