Samir Kaji, Senior Managing Director at First Republic Bank, discusses practical fundraising expectations and timelines for emerging micro VC managers.
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“Yeah, so the average right now is 18 months. If you are a first time manager, i.e. Have never done it before, you're probably going to be in that 18 month time frame, if not longer.”
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More from Samir Kaji
PredictionNot checkable as stated
Kaji: Direct VC investments by family offices will end badly
“The vast majority of high net worth individuals and family offices should not be doing direct investments. It's too hard. There's too many red flags that are sitting on the horizon. And I think it's going to end badly for a lot of people.”
Samir KajiOct 11, 2017▶ 15:2920VC: What Does It Take To Raise A Venture Fund Today, An Analysis of The Explosion of Seed Financing & Why IRR No Longer Takes Centre Stage with Samir Kaji, Senior Managing Director @ First Republic Bank
PredictionNot checkable as stated
Kaji: Only 10% to 20% of micro VCs will deliver expected returns
“I think a very few percentage of these micro firms are going to produce the type of returns expected. And I think it's going to hit sort of the normal distribution of which, you know, 10 to 20%, you know, have a nice return model. The rest are going to, you kn…”
Samir KajiDec 2, 2015▶ 13:4020 VC 093: Where Is The Micro VC Market Going with Samir Kaji @ First Republic Bank
PredictionNot publicly verifiable
Kaji: $5M-$10M micro VCs will launch on AngelList over traditional funds
“The next generation of sort of these proof of concept funds that are, you know, five or ten million dollars are more likely to get down on Angelus than they are, you know, standalone LP funds”
Samir KajiDec 2, 2015▶ 18:1920 VC 093: Where Is The Micro VC Market Going with Samir Kaji @ First Republic Bank
PredictionDidn’t hold up
Kaji: Active micro VC firms will drop to 100-150 by 2020
“Number one, I think we're going to see a contraction in this space. The number of active micro VCs I think is going to drop to close to a hundred to a 150 by the year, 2020.”
Samir KajiDec 2, 2015▶ 21:3620 VC 093: Where Is The Micro VC Market Going with Samir Kaji @ First Republic Bank
PredictionHeld up
Kaji: Top 10% micro VCs will outperform, but vast majority won't reach 3x net
“And if you're investing in an index, you're going to lose. I think the top 10% of micro VC funds will do phenomenally Well, and will significantly outpace the returns of larger funds, but the vast majority of the micro funds are going to have a tough time retu…”
Samir KajiOct 11, 2017▶ 11:2620VC: What Does It Take To Raise A Venture Fund Today, An Analysis of The Explosion of Seed Financing & Why IRR No Longer Takes Centre Stage with Samir Kaji, Senior Managing Director @ First Republic Bank
Opinion
Kaji: Early IRR metrics are meaningless when micro VCs raise Fund II
“Right now, Quite candidly, it's a little bit meaningless and it's more qualitative in function. So if we see a manager that's, you know, tracking at a 1.3 X, that's fine. But the reality is it means very little.”
Samir KajiOct 11, 2017▶ 20:2020VC: What Does It Take To Raise A Venture Fund Today, An Analysis of The Explosion of Seed Financing & Why IRR No Longer Takes Centre Stage with Samir Kaji, Senior Managing Director @ First Republic Bank
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