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This Week in Startups

How LPs identify top emerging fund managers with Slipstream’s Alex Edelson | E1898

Feb 15, 2024
01:21:21
Snipd AI
Alex Edelson of Slipstream Investors discusses fund of funds and their place in the venture ecosystem. Topics include fund size and ownership percentage for emerging fund managers, challenges in raising capital, overperformance of seed funds, identifying winners among funds, and the qualities of successful emerging fund managers.
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Podcast summary created with Snipd AI

Quick takeaways

  • The size of the initial funds and investments is crucial for a venture capital firm's long-term success, emphasizing the importance of getting the first few funds right in order to maintain continuous capital raising.
  • Understanding the perspectives and insights of limited partners (LPs) is essential for aspiring LPs and startup founders navigating the venture capital landscape, as LPs back general partners (GPs) to gain exposure to the asset class, diversify their portfolios, and access top-tier brands.

Deep dives

Importance of Fund Size and Initial Investments

In the podcast episode, the speaker highlights the crucial role that the size of the initial funds and investments play in a venture capital firm's long-term success. It is emphasized that getting the first few funds right is vital for maintaining continuous capital raising. The size of the fund is typically smaller during the initial stages, and the core team handles the investment sourcing, selection, and adding value. The discussion acknowledges that as teams grow and fund sizes evolve, challenges may arise, making it essential to prioritize fund performance and early investments.

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