Lyon Wong: Spectrum 28 raised $170M after initially targeting $125M
Leon Wong · 20VC: Why You Don't Have To Have Operational Experience To Be A Good VC, Why There Is No Optimal Stage To Invest & Why VCs Should Focus on Reputation Ahead of Cash On Cash Returns with Lyon Wong, General Partner @ Spectrum 28 · Oct 26, 2016 · at 7:12
Lyon Wong is Founding General Partner at Spectrum 28. He discloses how Spectrum 28 scaled up its initial fund size from $125M to $170M.
0:00 / 0:35exact quote · 35.8s
720p mp4 · rendered on demand · StarZero watermark
“So our target raise was closer to one 25. And I think we continually increased it because of thinking for the long term, there were LPs that we wanted to include in this fund to start building a relationship in order to raise a larger fund later. But really, for us, for two GP fund, we were starting with one 25 as the right amount. And I think between one 25, one 50 for two GP fund is reasonably what we feel we could deploy with quality. So ended up bringing it to one 70 because we also brought on some team members we felt were exceptional and we could We could be confident deploying that extra amount.”
quote is from the automated transcript, cleaned for reading: filler sounds and stutters are removed, nothing is rephrased. names can be misheard (the analysis reads context, assessments check outside sources). how →
More from Leon Wong
Wong: Post-seed and post-Series A face greatest venture capital shortages
“The demand is totally met by the supply of capital where you see capital gaps are in phases after that, where you have the larger seed seeds that require larger amounts of capital because they're tackling something harder. So in the healthcare space, or you're…”
Wong: Starting early in venture beats pivoting from an operating career
“I think the best investors stem from actually being investors. So the earlier in venture that you start investing, the better you're going to be over the long term. So I don't think doing a career, a lifetime career in another field and then switching over as …”
Lyon Wong: Real-time operator networks will outperform individual VC operating experience
“So I think having an operational network is key, but not necessarily you have to be the one to have experienced All aspects of operating and you to be imparting the wisdom yourself. I don't think that's the, that in 10 years from now, I don't think that that w…”
Wong: Late-stage VC returns can match early-stage IRR via faster exits
“So there's no definitive optimal stage because if you're on that efficiency curve and you're investing in the late stage, it's as good as investing in the early stage. Even if your multiple isn't as high as So not in the hundred X, but you're really faster to …”
Wong: VC firms built on star individuals collapse when key performers leave
“Otherwise, if you have stars, once the stars leave, you don't have something that remains as an organization.”
Wong: Single-partner credit attribution undermines collaboration in venture firms
“And regardless of who takes that board seat or who ends up being interfaced with the company, we all need to get credit for that. And that's something traditionally very difficult for venture firms to do because all credit just falls to the one person.”