David Clark is the CIO of VenCap International, a leading venture capital fund-of-funds. He describes VenCap's operational approach to sourcing fund managers.
“We have, I want to say we've never invested in a manager that has come into us directly.”
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More from David Clark
AssertionSupported
Clark: 45 Venture Investments Have Returned $1B+ to a Single Fund
“So we had a look at our data and we found 45 investments that have returned a billion dollars to the single fund that invested and were also fund returners.”
David ClarkMar 25, 2024▶ 0:05David Clark: Lessons from 32 Years of Fund Investing - Why Exits Will Be Larger | E1131 · 20VC with Harry Stebbings
AssertionSupported
PitchBook data: Only 2.6% of VC funds reach 5x DPI
“More than 50% hadn't returned one X capital. And so these are funds that are more than, that are 10 years old now, at least 10 years old now, hadn't returned one X capital. There was just 6.6% that had generated three X net DPI. And just 2.6% that had generate…”
David ClarkMar 25, 2024▶ 9:35David Clark: Lessons from 32 Years of Fund Investing - Why Exits Will Be Larger | E1131 · 20VC with Harry Stebbings
PredictionOpen · timeframe Mar 2034
Clark: Tech venture exit sizes will increase over next 10-15 years
“Ultimately the markets that they're playing in, and the share of the economic pie that technology is going to capture, in our view, is only going to increase. And so that gives us confidence that whatever the multiples are at the time of exit, the directionall…”
David ClarkMar 25, 2024▶ 14:44David Clark: Lessons from 32 Years of Fund Investing - Why Exits Will Be Larger | E1131 · 20VC with Harry Stebbings
PredictionOpen · timeframe Mar 2029
Clark: M&A regulatory chill will concentrate VC returns in fewer companies
“I think the impact that will have is that the concentration of returns in venture is going to be even smaller as they're going to be fewer companies that ultimately account for that, that performance.”
David ClarkMar 25, 2024▶ 22:55David Clark: Lessons from 32 Years of Fund Investing - Why Exits Will Be Larger | E1131 · 20VC with Harry Stebbings
Disclosure
Clark: VenCap last added a net-new fund manager in 2018
“Our last one was probably 2018. And it was a fund 18.”
David ClarkMar 25, 2024▶ 26:34David Clark: Lessons from 32 Years of Fund Investing - Why Exits Will Be Larger | E1131 · 20VC with Harry Stebbings
Insight
Clark: LPs prioritize capital deployment over 15-year fund performance
“Most LPs probably aren't going to be in the same job when that feedback comes. So they're more worried about deploying than they are about what happens 15 years down the line when, you know, when the performance data is, is actually in.”
David ClarkMar 25, 2024▶ 32:02David Clark: Lessons from 32 Years of Fund Investing - Why Exits Will Be Larger | E1131 · 20VC with Harry Stebbings
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