The Full Ratchet (TFR): Venture Capital and Startup Investing Demystified Investor Stories 359: Best LP Question (Klein, Jensen, Edelson)
Aug 1, 2024
In this engaging discussion, Todd Klein, an experienced allocator, shares insights on navigating essential questions from Limited Partners. Larsen Jensen emphasizes the power of impactful inquiries, revealing how they shape investment strategies. Alex Edelson contributes to the conversation by examining trust dynamics between LPs and founders, stressing the importance of deep engagement in building lasting relationships. Together, they explore the personal motivations behind venture capital, moving beyond surface accomplishments to connect with the core of entrepreneurial journeys.
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Unexpected Question
- An LP asked Todd Klein why he enjoys his venture capital job, despite its challenges.
- This prompted reflection on his career motivations and the inherent struggles of supporting companies.
LP Due Diligence
- LPs should thoroughly research and spend time with GPs, similar to how VCs vet founders.
- Building trust and understanding a GP's thought process is crucial for successful partnerships.
Market Timing Question
- In 2021, an LP questioned Alex Edelson about market conditions and venture capital timing.
- This prompted him to develop a resilient investment strategy adaptable to various market cycles.