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"Turpentine VC" | Venture Capital and Investing  cover image

E24: Building a Multi-Billion-Dollar Asset Management Firm with CoVenture's Ali Hamed

"Turpentine VC" | Venture Capital and Investing

NOTE

Balancing Fundraising and Credibility in Building a Business

The two limiting factors in building a business quickly are raising non-discretionary funds, such as single name SPVs, and having a narrowly focused fund, which may be great for narrative but potentially worse for investing. Narrowly focused funds make the firm more credible to LPs and limits downside risk, as they can understand the strategy better. However, raising non-discretionary funds, such as with extreme flexibility in fund usage, may make it easier to attract capital without requiring as much trust from investors.

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