Warrington: Underwriting venture funds centers on a manager's right to win ownership
Sean Warrington · Ed Grefenstette and Sean Warrington – Venture Market Update (EP.488) · Feb 23, 2026 · at 35:43
Sean Warrington of Gresham Partners explains how institutional LPs evaluate GP fund construction and ownership targets given the unpredictability of 10-year exit markets.
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“Where we think about the math, it really boils down to the VC's right to win the check they're going to invest. What we mean by that is if someone's trying to own 20% of a company at the seed stage, They better have a good argument why that founder wants their money, why it's still a special company, and how they're going to box out the other great venture capitalists out there. When we say the math, a lot of times what we mean is this person's trying to own X percent of a company. Does their gravitas, their technical ability, their ability to help sell the next round of capital justify that check size, that ownership relative to the situation?”
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