Monique Woodard, Fund of Funds Panel & The Pro-Rata Yacht! | E2018

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Oct 2, 2024

Guest

Monique Woodard, co-founder of Cake Ventures, is joined by Ben Choi of Next Legacy Ventures and Michael Downing from MDSV Capital. They dive into the power of fund-of-funds, highlighting how they connect high net worth investors with emerging managers. The trio discusses the unique challenges faced by these managers, especially in the pre-seed stage, and the essential strategies for raising a first fund. They also touch on the innovative ways smaller funds can achieve high returns and the importance of institutional versus individual investors in driving success.

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INSIGHT

Overconfidence in Venture Capital

Most drivers overestimate their skill, just like investors often overestimate their ability.
In venture capital, this misjudgment has significant consequences due to high performance dispersion.

INSIGHT

Untapped Potential of Emerging Managers

Emerging manager funds, despite outperforming the market, are often overlooked.
They represent a significant untapped opportunity, particularly in early-stage investments.

ANECDOTE

The Pro-Rata Yacht

A simulation showed that an extra $250K invested in the Series B of Uber, Thumbtack, and Robinhood would have yielded significant returns.
This highlights the potential of pro-rata investments.

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