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How Private Equity and Venture Capital Investors Are Eating Their Own Dogfood

David Teten

Johann Kratzer of Blue Future Partners , a fund of funds, observed, “The majority of the hundreds of funds we’ve diligenced rely predominantly on their relationships to source deals. An investor had few hard metrics other than the actual financials, and little technology to make the process scaleable. 2) Raise capital.

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15 Steps to Fundraising for Your New Venture Capital or Private Equity Fund

David Teten

Build the firm as much as possible before you solicit limited partners. . Set up the basic marketing toolkit: deck, website, accurate online databases, and social media accounts. . Your materials should ideally meet the expectations of the Institutional Limited Partners Association, even if you’re not targeting institutions.

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VCs eating our own dog food: Using technology and analytics to make better investments

David Teten

However, in private markets, there is more room to optimize across all 11 steps of the investing process: firm management , marketing, fundraising , origination , manage relationships, due diligence, negotiation, monitoring, portfolio acceleration , reporting, and. 1) Manage the firm . This is harder than it sounds.

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High Returns On A Small Fund Challenge Low Returns On A Big Fund

David Teten

The Kauffman Foundation points out several reasons why they choose to keep pouring capital into the industry: the J-curve narrative, VC investment allocation mandates (which should disproportionally benefit large funds), the “relationship business” philosophy, and potentially misleading return metrics (such as IRR).

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