Zeev: LPs are wildly over-diversified with 20 to 40 GP relationships
Oren Zeev · Oren Zeev: How I Raised $1 BILLION in 12 Months | 20VC #888 · 20VC with Harry Stebbings · May 24, 2022 · at 27:57
Oren Zeev is the founding partner at Zeev Ventures and a prominent solo VC. He argues that institutional limited partners (LPs) needlessly dilute their exposure by backing dozens of venture funds.
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“I would say that on the LP side, I think they're way over-diversified because most of them have 20, 30, 40 relationships. That's crazy because each of their underlying investments or funds is also very diversified. It's not very likely to lose money. So each, you know, a fund is not, is, A hundred times less risky than an individual investment. So why do they need 20, 3040, you know, relationships? It's stupid. They don't.”
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