How I Invest with David Weisburd
E36: Masterclass on Portfolio Construction with Anubhav Srivastava, CEO of Tactyc
Jan 26, 2024
Anubhav Srivastava, CEO of Tactyc, discusses portfolio construction, fund recycling, reserve strategies, and follow-on investments. They also explore the future of Tactyc and lessons from clients.
23:43
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Quick takeaways
- Iterative portfolio construction is key in fundraising for venture capital funds, with the ideal portfolio size being around 35 to 40 companies.
- Tactyc is a forecasting and planning software that helps VCs optimize fund performance, raise funds, and build portfolio construction plans, emphasizing the importance of maintaining a live version of fund models throughout the fund's lifecycle.
Deep dives
Importance of Portfolio Construction in Fundraising
The podcast episode highlights the significance of portfolio construction in fundraising for venture capital funds. It explains that the number of investments should be the primary focus rather than the reserve ratio. The ideal portfolio size is around 35 to 40 companies, providing enough shots on goal for potential outliers. The episode also mentions that the reserve ratio varies based on the fund size, ranging from 20-25% for a $25 million fund to 50% for funds exceeding $70 million. Iterative portfolio construction is emphasized, where various parameters like check sizes and reserves are iterated upon to achieve the desired portfolio size.
