Special Purpose Vehicles are much harder to raise during economic downturns
Mark Suster · 20VC: Upfront's Mark Suster on COVID Redefining What A Great Company Looks Like and What Valuations Look Like, Why Pay-To-Play Is Back On The Table & Why We Will See The Death of Party Rounds · Apr 20, 2020 · at 23:34
Mark Suster, Managing Partner at Upfront Ventures, discusses the risks facing seed funds that rely on SPVs instead of maintaining dedicated capital reserves during market contractions.
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“SPVs are much harder to raise now, and so your ability to protect not just your winners, But also your companies that are struggling and need to get from point A to point B to maybe someday be a winner, it's going to be much harder.”
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