Optimizing fund structure, GP market fit, & more with Screendoor’s Jamie Rhode | Episode 1917

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Mar 21, 2024

Jamie Rhode, part of Screendoor—focused on elevating early-stage fund managers—engages in a lively discussion about the challenges and strategies in venture capital. They tackle the evolution in fund management and the crucial concept of GP market fit. Jamie explains effective portfolio construction techniques and highlights why seed-stage investing sees fewer general partners. The conversation also touches on the importance of supporting diverse voices in finance and the transformative potential of overlooked venture managers in reshaping industries.

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INSIGHT

Venture Returns and Portfolio Construction

Early-stage venture returns are driven by outliers and require exposure to unconventional ideas.
Invest in enough fund managers to capture these outliers, recognizing most won't yield venture-like returns.

ADVICE

Evaluating GP Fit

Focus on GP market fit, aligning expertise with strategy and long-term vision.
Evaluate if a GP has a clear understanding of transitioning from investor to fund manager.

INSIGHT

Return Profiles of Venture Stages

Late-stage venture returns resemble buyout and growth equity, around 14% CAGR.
Early-stage venture, however, can yield much higher returns, potentially 28% CAGR or 19x over 12 years.

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