Disclosure certainty 4/5 debate potential 1/5

Top Tier's average U.S. venture fund commitment is $20 million

Lisa Edgar · 20VC: Inside The Mind of A Leading LP: How LPs Evaluate New Fund Managers on Everything from First Meeting to Portfolio Construction To Fees and Carry with Lisa Edgar, Managing Director @ Top Tier Capital Partners · Nov 4, 2019 · at 13:50

Lisa Edgar is Managing Director at Top Tier Capital Partners. She discloses average institutional commitment sizes when allocating to U.S. venture funds.

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“Our average commitment is twenty million, that's because that's kind of what ours is in our main kind of U.S.”

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More from Lisa Edgar

Disclosure
Top Tier never backs first-time fund managers without an investing track record
“While we might invest in first-time funds, we won't invest in first-time investors, so there must be a track”
Lisa Edgar Nov 4, 2019 ▶ 10:49 20VC: Inside The Mind of A Leading LP: How LPs Evaluate New Fund Managers on Everything from First Meeting to Portfolio Construction To Fees and Carry with Lisa Edgar, Managing Director @ Top Tier Capital Partners
Disclosure
Top Tier has refused to re-up with top-performing venture funds
“And we've done this, it could be that we're evaluating and doing our compare and contrast, as we call it, and there might be a One of the best performers in our portfolio, and we don't re-up, and the numbers would tell you all day long, you know, with your eye…”
Lisa Edgar Nov 4, 2019 ▶ 11:26 20VC: Inside The Mind of A Leading LP: How LPs Evaluate New Fund Managers on Everything from First Meeting to Portfolio Construction To Fees and Carry with Lisa Edgar, Managing Director @ Top Tier Capital Partners
Opinion
Premium venture capital carry should require a 3X return hurdle
“For carry, I think you have to start at 20%. That is the base when you're getting started, and to have some type of premium carry after a return hurdle is okay, but really that return hurdle should be three X, you know, not two X, because you kind of have to d…”
Lisa Edgar Nov 4, 2019 ▶ 20:45 20VC: Inside The Mind of A Leading LP: How LPs Evaluate New Fund Managers on Everything from First Meeting to Portfolio Construction To Fees and Carry with Lisa Edgar, Managing Director @ Top Tier Capital Partners
Assertion Not publicly verifiable
Lisa Edgar: Top Tier managed two VC fund-of-funds with no J-curve
“We had two fund-to-funds that didn't even have a J-curve. I mean, think about it. Venture capital only, fund-to-funds, no J-curve.”
Lisa Edgar Nov 4, 2019 ▶ 16:13 20VC: Inside The Mind of A Leading LP: How LPs Evaluate New Fund Managers on Everything from First Meeting to Portfolio Construction To Fees and Carry with Lisa Edgar, Managing Director @ Top Tier Capital Partners
Assertion Supported
Top venture capital firms command premium carry above the standard 20%
“So VC is not a two and 20 world. PE is, but a lot of VC isn't, and certainly when I say that, I really mean the top players. I mean, they have premium carry, and we are fortunate enough to have a portfolio of a lot of that.”
Lisa Edgar Nov 4, 2019 ▶ 19:38 20VC: Inside The Mind of A Leading LP: How LPs Evaluate New Fund Managers on Everything from First Meeting to Portfolio Construction To Fees and Carry with Lisa Edgar, Managing Director @ Top Tier Capital Partners
Assertion Not checkable as stated
Edgar: Globalization is the biggest shift in venture capital over 20 years
“It's changed, obviously, dramatically from a very small cottage industry that was really Silicon Valley in Boston, so it was really US-based, and I would say the biggest change that we see today is really the globalization, and sitting in this room, you know, …”
Lisa Edgar Nov 4, 2019 ▶ 7:02 20VC: Inside The Mind of A Leading LP: How LPs Evaluate New Fund Managers on Everything from First Meeting to Portfolio Construction To Fees and Carry with Lisa Edgar, Managing Director @ Top Tier Capital Partners
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