Fund

“There's also many funds make investments into other emerging managers, like us, with primary goal to get access to their deal flow and their network.”

“Most people run funds, very few people in my definition build firms. And the objective function of a fund is how do I generate The most carry with the fewest people in the shortest amount of time possible.”

“If you have a 35% position in one stock, and then your second position is three or five percent, you're not a fund, you're a stock.”

“At least 50% of the funds today, and maybe more, either cannot raise, or at least are not sure that they can raise, or they're trying to stall and, you know, not test the market, and I think many of them are not gonna be able to raise.”

“Starting in a model that's, that resembles a special purpose vehicle versus a fund may be easier. To start in the beginning because, you know, it gives LPs a lot more flexibility and it could be easy to get them over the line.”

“And I actually just read some research this morning that shows you know, investing in 50 companies in a fund actually gives you potential for better returns than picking very, very few select investments that knowing that like a third of them are going to fail…”

“The only way the math works is if you stuff money into the very best company and you don't end up with a balanced portfolio. You end up literally with one company having 20, 30% of your fund in it, and that company turns out to be the big winner.”

“Because for them, they either want a billion dollar valuation, or they don't necessarily care. Like, they'd rather become a zero, versus us Be a two hundred million dollar company, it's life changing for the founders, but it doesn't do anything for the fund.”

“We're agnostic to size of the fund, and sometimes that creates a queue at the window to get them, and sometimes that creates clients not having the best experience because they didn't get it, or they got a much smaller amount that they originally wanted alloca…”

“There are definitely certain funds that come to mind that I won't name who have decided the strategy that they're going to employ is to use valuation as a lever to win.”

“Private to private transactions are going to happen way more. Right. Like you're going to look just as it happened in private equity, like funds will sell the funds.”

“And by the way, in 2005, six, seven, eight, funds contracted by 50% when they went to raise their next fund.”

“The pitch is starting a fund.”

“Oftentimes when a GP leaves a fund it's very happy on the surface and everybody's like, congrats. Really excited for you. Like, can't wait to see what you do next. But then behind the scenes, like, They were forced out, or, like, they hate, there was a lot of …”

“I don't think you should start a fund if you know, get some big wins under your belt before you really go big.”

“Cause you're too small to plow money into things and you're far too big to ever return multiples in the funds. Like five hundred million dollars is like exactly the wrong size of a fund.”

“They'll make a ton of money in fees, but they will not be able to raise funds.”

“Like, even if that fund didn't return another dollar, we'd be like a top one percent fund, and fortunately, it's gonna return more dollars.”

“Now, we can, the government can spend three percent of the fund every year, and it funds roughly 20% of the state budget.”

“Why take on 15 year illiquidity for oftentimes funds that return less than the S and P, which is the dirty little secret of Silicon Valley.”

“You know, I don't think funds have really cut costs yet, really, but I bet they will.”

“So we actually didn't even take any expenses from drawdown from the fund because we felt like we need to actually invest before we can justify having fund expenses.”

“I would say funds have the best margins and the smaller SPVs have the worst. And For some of the smaller SPVs, those are a loss leader for us.”

“General partners will do different deals at the beginning of their fund than they will do at the end of their fund, and how does that work for you? If it's at the end of their fund and they want a very low risk, but lower return deal, they're looking for more …”

“We just raised a four and a half billion dollar new fund.”

“Because in venture, it's missing the upside, not protecting the downside that's going to lead to not have a successful fund. The most important thing is being in those right companies and owning enough of them.”

“Right now it's north of five X.”

“If you want liquidity in earlier stage you know, that's actually becoming an option now where was it, you know, from my understanding, it wasn't much of an option even just a few years ago, but now it's, you know funds are getting more used to offering it.”

“Is it appropriate that you're charging fees on the fund, and you're also charging a fee for putting trades into the fund? Well, no. That's an easy standard to say, no, you're getting paid to run the fund. You shouldn't double dip.”

“Will the retail investors come into this category? Maybe, but it's going to be through funds. And I think the change, the changes in SEC regulation might just actually allow these people to enter these kinds of funds.”

“So from the fund, we do a minimum ticket size of a 100,000 dollars and take it up to about 600,000 dollars.”

“One thing we do at our firm that's probably different than a lot of other firms is we still use about 10% of the fund towards things we're building ourselves”

“We're probably like 45% banks, 45% funds, you know, the buy side. And then about 10% brokers.”

“I've seen a number of funds who basically have come in and wiped out my pro rata or my follow-on, and those funds will never see another deal from me if I can help it.”

“If you just look at the statistics on this, the percentage of ownership of tech stocks by individuals has dropped like a rock since 2000. It's basically now all funds”

“Funds are inherently more conservative than individuals because funds have, you know, they feel like they have a responsibility to be sober, and so they're not that excited about the next hot IPO.”

“The more complex a strategy, the more moving pieces it has, the harder it is to set expectations. So, precisely the funds that we think are positioned, To do the best for us during complex times are probably the ones best positioned to disappoint us.”

“I think ultimately what you're looking for as a founder when fundraising, assuming you have options, is someone you think will be a partner to you, and you know, I always say that the partner means much more than the fund, and so find out how you work together…”

“So if you look at funds, don't look at the time weighted return, which is the NAV, the per share NAV over time. Look at the capital weighted returns, because so many of the big funds, the brand name funds, they did really well with small amounts of money, and …”

“Although I think it's much harder for people to launch funds today than it was, you know, in the salad days.”

“If we could actually sort of make founders partners in the fund, they would be more supportive of one another.”

“If you're going to be a partner, you have to make a commitment for a decade, if not decades because if you're raising a fund and the promise that you are part of that story for the life of the fund, and by the way, in that fund, you will probably raise fund tw…”