E82: Why LPs Use Fund of Funds to Invest into Venture Capital w/ Fernando Saiz

Fernando Saiz, Co-Founder of Azet Capital, sits down with David Weisburd to discuss Azet Capital’s fund of funds strategy in venture capital. Fernando shares his diligence process for selecting venture funds, what differentiates the funds Azet invests in vs. the ones they pass on, and Azet’s strategic value-add to venture GPs. (0:00) Introduction to venture capital in Latin America and differentiating factors of successful funds (1:01) Consolidated strategies on asset capital and reserve strategies (2:48) Seed managers' follow-on strategies and diligence process (6:23) Accelerating and confirming the diligence process for funds (8:15) Evaluating emerging managers and attribution in spinout funds (10:40) Benchmarking data tools and selectivity in fund investments (14:30) Fund of funds product motivation and educating LPs in the Mexican market (19:45) The benefits of having LPs in Latin America and diligence on LPs by fund managers (23:09) Value addition strategies from top seed managers (24:51) Guest insights and encouragement for venture capital investment (26:04) Final thoughts and closing remarks