Garber: LPs Require 1x DPI Before Backing Subsequent Venture Funds
Scott Garber · 9 - Empowering Founders to Win with Early Light Ventures Managing Partner Scott Garber · Dec 5, 2024 · at 25:00
Scott Garber discusses venture fund portfolio management and LP expectations when raising successor funds.
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“You have to produce basically a one X DPI in whatever fund you're in that they've invested in to get them to invest in the next fund. It doesn't matter how well it's shaping up versus the vintage. It doesn't matter if it's top core, top top decile. It doesn't matter what your angel investment track record is. It could be eight or 10 X realizing it's 50, 60, 70% net IRR. Doesn't necessarily matter. Did they get all their money back? And do they think that there's actual upside in that for them to invest in the next fund? Not everyone, but a lot of the LPs want that”
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