Multi-billion VC funds need 50% concentration in few winners to 4x
Ed Grefenstette · Ed Grefenstette – Bold Allocations at The Dietrich Foundation (EP.437) · Mar 24, 2025 · at 57:08
Ed Grefenstette, CEO and CIO of The Dietrich Foundation, discusses portfolio construction models for large venture capital funds.
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“When they see a company they've backed in the seed in Series A, they will lean in hard on the subsequent Rounds to the point where at the end of portfolio construction, they might have 40, 50% of the fund in three or four companies. That, to us, is exactly how a two or three or four billion dollar fund needs to be structured in order to hit a four or five X net return.”
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