EUVC VC | E432 | Multiple Capital's Ertan Can on Investing in Micro Funds For Outlier Returns
Mar 27, 2025
42:44
In today’s episode, Andreas Munk Holm talks with Ertan Can, the Founding General Partner of Multiple Capital, a venture capital fund based in Luxembourg. Together, they delve into how micro funds work and why they’re becoming an attractive investment option for limited partners.
Ertan discusses the role of manager selection and the benefits of a diversified micro-fund portfolio. He outlines LPs' challenges in sifting through hundreds of emerging funds each year, noting that a disciplined approach is needed to identify the best opportunities. The discussion also touches on the influence of local networks and market niches in sourcing high-quality deals and future trends in venture capital, highlighting how a strategic focus on micro funds may offer more sustainable and robust returns for LPs.
Chapters:
Ertan discusses the role of manager selection and the benefits of a diversified micro-fund portfolio. He outlines LPs' challenges in sifting through hundreds of emerging funds each year, noting that a disciplined approach is needed to identify the best opportunities. The discussion also touches on the influence of local networks and market niches in sourcing high-quality deals and future trends in venture capital, highlighting how a strategic focus on micro funds may offer more sustainable and robust returns for LPs.
Chapters:
- 02:15 Importance of Fund Size
- 03:34 Emerging Managers and Small Funds
- 04:56 Performance of Small Funds
- 11:08 Management Fees and Small Funds
- 12:41 Exit Valuations and Small Funds
- 13:31 Summary of the Presentation
- 14:49 Post-Presentation Discussion
- 16:39 Challenges for LPs in Selecting Funds
- 17:43 Optimal Number of Fund Managers
- 19:13 Debate on Micro Funds
- 21:27 Risk Perception in Venture Capital
- 22:34 Alternative Investment Strategies
- 26:37 Geographical and Vertical Specialization
- 27:29 Future of the Venture Market