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The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch cover image

20VC: Are LPs Open For Business? What Does it Take to Raise a Fund Today? How Has What LPs Want to See in Fund Investments Changed? Why Do LP Incentive Mechanisms Need to Change? Which Funds Will be Hit Hardest with Beezer Clarkson @ Sapphire Partners

The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch

NOTE

Taking Risk and Outperformance: Insights on Fund Size and Ownership

Tim Draper is known for his unique perspective on fear and risk, according to someone who used to work at DFJ. To achieve outperformance in a fund, you have to take risks and think about your appetite for them. It's difficult for an early stage fund to succeed without a few high-return investments. Ownership is important for outperformance, especially for smaller funds. If a fund wants to exceed $50 million, there may be a trade-off between ownership and fund size. Getting a company like Coinbase in your fund can significantly impact its performance, regardless of the fund's size.

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