Categories
Insights Resources

What VC’s need to know about General Solicitation

In countries around the world, there are rules and regulations that govern pitching limited partners (LPs), the investors in venture capital funds. Publicly pitching for investment, called General Solicitation, is commonly regulated, and it is important for new managers to understand the local rules and regulations.

This is a practical overview of general solicitation for venture capital fund managers. This overview is not legal advice, and fund managers are encouraged to read the Legal Disclaimer.

What is General Solicitation?

“General solicitation” refers to raising capital by making public statements and soliciting interest from strangers. While general solicitation can be applied to various forms of fundraising, this overview focuses on venture capital.

The general solicitation regulations are in place to protect average citizens from having their savings lost by savvy fund managers promising large returns from high-risk and often illiquid investments. Most governments believe that wealthy and sophisticated investors, referred to as “accredited investors” in the U.S., can take risks with their capital on speculative opportunities.

General solicitation is regulated by the Securities and Exchange Commission (SEC) In the U.S. and by AIFMD in Europe under “pre-marketing” rules. The regulations vary widely around the world by country, including how they are applied. The regulations of some countries apply to citizens anywhere in the world. As an example, a U.S. fund raising from European limited partners will need to comply with both the U.S. and the European rules, which can get complicated.

How do you avoid General Solicitation?

VC Lab has compiled some best practices for pitching limited partners as a series of Dos and Don’ts.

The Dos
  • Do have a pre-existing relationship with a potential limited partner before pitching them by, for example, waiting 30 days between a first meeting and the pitch
  • Do have a substantive relationship with a potential limited partner before sharing fund materials by, for example, understanding their investment experience and sophistication
  • Do pitch limited partners that you reasonably believe are wealthy with the means to lose the investment
  • Do personalize messages to each potential limited partner versus sending mass emails
The Don’ts
  • Don’t make public statements, share fund information on social or issue press releases while fundraising
  • Don’t have a public fund website with your investment thesis or with a contact link while fundraising
  • Don’t speak at events, seminars, webinars or meetings where strangers are invited and where you talk about the fund Thesis or investments while fundraising
  • Don’t reach out beyond your social, personal or professional network of close friends and colleagues
General Solicitation
Quick Guidelines to Avoid General Solicitation

These best practices are meant to compliment advice from local lawyers familiar with the general solicitation regulations.

TIP

When asking advice from lawyers, don’t ask if you can do something, but, rather, ask how to do something.

How do you raise money without General Solicitation?

Here is an ideal situation to meet and close a limited partner.

  • First, you meet a prospective limited partner, ideally through a qualified introduction.
  • Next, you get to know them (i.e., the preexisting relationship), and you come to understand that they are wealthy and that they are suitable for illiquid investments (i.e, the substantive relationship).
  • Then, after some time, you discuss that you are launching a fund and review your fund strategy without revealing all of the details on the planned fund.
  • Lastly, the limited partner prospect requests more information on your fund, and you share the materials, which inspires an investment.

This ideal situation does not always happen in practice. Some important things to encourage in every situation are that (1) you establish a relationship first and that (2) you believe that they are wealthy and sophisticated.

What happens if you break General Solicitation laws?

Depending on the jurisdiction, anyone can report you for a violation, and the local authorities can initiate an investigation at any time. The investigation is relatively easy, since there is often public evidence of the violation.

The result can be complex legal proceedings and ultimately the unwinding of the investment plus fines and penalties. In the U.S., penalties include being barred from raising money for a period of 5-10 years. This varies by jurisdiction.

Common Question on General Solicitation

When can I speak publicly about the fund?

After the fund is fully raised and closed and after you finish selling any interests in your fund, then you can engage in publicity, do social media, speak about the Thesis and discuss investments.

Can I speak at an event?

Yes. But, you can’t say that you are raising a fund or selling securities, let alone or discuss the fund Thesis. You can put your title and fund name as your role, and you can discuss strategic insights that you are seeing.

Can I tell my close friends and family about the fund?

Yes. However, do not ask them to invest or participate in the fund unless they are wealthy and meet local accreditation standards and other regulatory requirements.

What happens if someone unqualified asks me about my fund?

Tell them that you are not able to disclose details of what you are working on due to general solicitation rules. If they press the matter, tell them that they are being inappropriate and potentially hurtful to your activities.

Can I share anything about my fund on Social Media?

No. Don’t share that you are thinking to raise or actually are raising a fund. Don’t share the fund name. Don’t share that you are looking for limited partners. Don’t share that you are doing any deals.

Why do people share about their funds on social media?

There are two reasons. First, they are violating general solicitation rules. Second, they are complying with special regulations that allow general solicitation, such as rule 506(c) in the U.S.

Should I try to comply with special general solicitation rules to market the fund?

VC Lab does not recommend this strategy at the moment. Most firms that use legal versions of general solicitation appear unprofessional, and general solicitation traditionally attracts smaller or unsophisticated limited partners.

Can I email or call people that I don’t know and ask them to invest?

No. You need to have a pre-existing and substantive business relationship before discussing your fund strategy with someone. You can meet anyone and build a relationship without mentioning the fund. You can discussing strategies and past investment experience without revealing key information about your fund Thesis, such as fund size. Then, ideally, the person asks you for information on the fund.

If you have other questions, please ask them in a reply below.

LEGAL DISCLAIMER

This information is for general information purposes. It does not, is not intended to, and you should not consider it to constitute legal advice. Because laws, rules and regulations frequently change, or may have been overruled or superseded, such information may not be up to date.

You should consult with your counsel to obtain legal advice for your specific situation. You should not rely on, or act or refrain from acting, based on such information. No attorney-client relationship is, can or may be formed with us or any officer, director, employee or representative. We are not a law firm, and you should not consider our information as legal advice.

We assume no responsibility for your decision to rely on, or act or refrain from acting, based on our information, which is provided “as is,” “where is” and “with all faults.” We expressly disclaim any and all liability to you, and no representations and warranties are made whatsoever, including without limitation that our information is current, error-free, advisable and/or proper.

Categories
Uncategorized

Tips to Avoid General Solicitation for VCs

In venture capital, publicly announcing a fund or pitching to limited partners that you do not know are considered General Solicitation, which is regulated in most countries. As a fund manager, it is important to know the local rules and regulations. To get started, here are some quick and practical some practical Dos and Dont’s.

How do you avoid General Solicitation?

VC Lab has compiled some best practices for pitching limited partners:

The Dos
  • Do have a pre-existing relationship with a potential limited partner before pitching them by, for example, waiting 30 days between a first meeting and the pitch
  • Do have a substantive relationship with a potential limited partner before sharing fund materials by, for example, understanding their investment experience and sophistication
  • Do pitch limited partners that you reasonably believe are wealthy with the means to lose the investment
  • Do personalize messages to each potential limited partner versus sending mass emails
The Don’ts
  • Don’t make public statements, share fund information on social or issue press releases while fundraising
  • Don’t have a public fund website with your investment thesis or with a contact link while fundraising
  • Don’t speak at events, seminars, webinars or meetings where strangers are invited and where you talk about the fund Thesis or investments while fundraising
  • Don’t reach out beyond your social, personal or professional network of close friends and colleagues

For more information, including a Q&A and specific tips on how to pitch limited partners without general solicitation, refer to this article.

LEGAL DISCLAIMER

This information is for general information purposes. It does not, is not intended to, and you should not consider it to constitute legal advice. Because laws, rules and regulations frequently change, or may have been overruled or superseded, such information may not be up to date.

You should consult with your counsel to obtain legal advice for your specific situation. You should not rely on, or act or refrain from acting, based on such information. No attorney-client relationship is, can or may be formed with us or any officer, director, employee or representative. We are not a law firm, and you should not consider our information as legal advice.

We assume no responsibility for your decision to rely on, or act or refrain from acting, based on our information, which is provided “as is,” “where is” and “with all faults.” We expressly disclaim any and all liability to you, and no representations and warranties are made whatsoever, including without limitation that our information is current, error-free, advisable and/or proper.

Categories
Uncategorized

How to Find Limited Partners: Utilizing Connectors

A connector is a person who can give you warm introductions to relevant potential investors in your fund. Typically, connectors have existing relationships with wealthy individuals, and as such, they can introduce many potential investors to you. Warm introductions usually have a higher success rate, therefore utilizing connectors can be a very powerful tool. These connectors can be exited Founders, Venture Partners, other General Partners, Limited Partners, and general High Net Worth Individuals (HNWIs). By utilizing connectors, you can leverage more nodes in the network and drastically increase your exposure to potential investors, consequently further boosting your chances of closing your first fund successfully.  

Types of Connectors

Founders

Successful and exited startup Founders can be a good resource for new fund managers, as such Founders’ opinions are incredibly valuable to LPsSpeaking with VC LabCourt LorenziniLP in over 15 VC firms and Co-Founder of DocuSign, shares that he often speaks with Founders of warehoused deals to aid his decision-making. During his deliberation process to finance a new fund manager, much like many LPs, he too looks to ascertain why Founders chose to work with you over other VCs. Consequently, getting references and introductions from Founders who have had significant markups can go a long way to impressing any potential LPs. Many LPs in Venture Capital firms are also direct investors in startups.

It is highly advantageous to have a list of such Founders to call upon since most exited Founders are wealthy and more comfortable with the asset class than most; therefore, they may be willing to invest in your fund themselves. More often than not, successful Founders may also have great relationships and a direct line of communication with HNWIs and Family Offices and can potentially connect you to others who might be interested in becoming an LP in your fund. 

If you do not have a vast network, providing value to Founders is a great long-term strategy to build these relationships. Note that this can take quite some time, though it is advisable to start developing your network as soon as possible. You can add value to a startup in equal parts, both as an investor and an advisor to the company. Such acts will enable you to build a deep-rooted network within VC and can expedite fundraising in the future.

Other VCs

Other General Partners and Venture Capitalists can also prove to be a great source and means of meeting new Limited Partners. Once again, it would be best if you looked to leverage your network and get introduced to Limited Partners. For example, if you attend VC Lab, you can discuss the matter with your cohort peers and work towards a mutually beneficial outcome. One way you can do this is to be open with your LPs and give introductions to other General Partners. When making introductions and asking for them, make sure that all parties have opted into the introduction and you follow the expected etiquette. It’s often best to practice making this as less transactional as possible and optimizing to provide value to all parties involved

Venture Partners

A Venture Partner is a well-networked strategic partner that typically does not reside within the Venture Capital firm. As such, they are a valuable resource for NextGen VCs in multiple functions, one being fundraising. These terms are outlined in the Venture Partner Agreement and can be modified to suit both parties. You can adjust levels of commitment from the Venture Partner and agree upon fair compensation and commission for the results they produce via carry in the fund

Therefore, as a new manager of a Venture Capital firm, it can be highly beneficial to make tactical alliances with Venture Partners. LPs too can look positively to such individuals who can share their expertise with the firm and both source deals as well as help you fundraise. Venture Partners are increasingly becoming the new source of labor in Venture Capital and are proving to be extremely valuable to NextGen VCs and are something you can consider utilizing.

Approach 

When looking for potential LPs, you can refer to our ‘Conducting Cold Outreach guide to help you find them on the internet. Specifically, you can utilize LinkedIn and search for relevant 2nd-degree connections in your desired region. When searching for limited partners, you can adopt a sound CRM system to track your process and leads. This CRM system can be a spreadsheet or specifically tailored softwareNote your relevant existing connections to the potential LPs you want to engage with during the process. For example, if an ex-colleague is a mutual connection, you can make a note of that in your CRM to the particular LP, as you will reach out to your references in the near future for an introduction. 

Before reaching out to your connections for introductions, you can research why each LP is relevant to your fund. Look for pertinent qualifiers that make them suitable. For example, if they have previously invested in fund managers with a similar focus / sector or in the pre-seed to seed stage. This research will make your ask more compelling as you can demonstrate your knowledge in your messaging to your connection. By such a demonstration, you give connectors confidence that you too may be a person of interest to the investor and worthy of connecting.

Messaging

Nathan Beckord, CEO, and Founder of Foundersuite, recommends that when messaging your connections, you place emphasis and on your messaging, both in the question you ask and the knowledge you demonstrate. The typical “Is there anyone I should speak with?” question does not elicit a response from connectors. If you do not know what you are looking for, neither will others. Instead, Nathan recommends you utilize your research on LPs and demonstrate your knowledge of them in your outreach to connectors. The goal here is to invoke a positive response by having a clear ‘ask’ and establishing the investor’s pertinence

For example, you may ask for an introduction to a list of 4 potential investors from one particular connector. It will help if you explain why each specific investor is relevant to your fund in your messaging to the connector.

As an example, in your outreach, you can mention:

John Doe – has previously invested in a pre-seed stage VC firm in our area of focus

Joe Bloggs – states in his profile that he is looking to invest in new fund managers

Jess Schmoe – has spoken about our area of focus extensively and has relevant experience

Jane Smith – is a co-investor in one of our warehoused deals

This content is provided by VC Lab, the venture capital accelerator. 

The free 16 week VC Lab program provides guidance, structure and a network to complete a fund closing in 6 months or less. Since mid 2020, VC Lab has helped launch over 100 venture capital firms around the world.

Categories
Uncategorized

How to Find Limited Partners: Leveraging Your Network

Launching a VC firm can be a demanding undertaking. New fund managers face many challenges, including fundraising and finding new LPs. Even with a vast network of investors, fundraising can prove to be a challenging task, so the process can become more arduous without deep-rooted connections in Venture Capital.

Difficulties can arise as many LPs prefer to stay anonymous and do not publicly share their investment status’, objectives, or activities. In our ‘How to Find LPs’ series, we guide new fund managers to leverage and expand their networks. This article will briefly outline ways to leverage your existing network and offer some ways to gradually grow your connections within Venture Capital. When doing so, it would be advisable that fund managers care to avoid general solicitation.

Leveraging Your Network

To run a successful fundraising campaign, it is recommended that you and your partners engage with your network of GPs, Founders, friends, and family. Typically this will be the primary source of your fundraising efforts if you have a vast network. We find that the amount you can raise from your internal network is a significant determinant of your total fund size. Therefore, we advise that you multiply your hard commitments from your inner network by a factor of 10 to find your optimal fund size. Refer to VC Lab’s free Network Evaluation Template spreadsheet for guidance on estimating your ideal fund size.

Connectors

One of the best ways to meet new Limited Partners is by utilizing existing relationships within your firm to those who can connect you to potential investors. Connectors are typically well-connected individuals within Venture Capital who can open their networks to enable you to fundraise efficiently. They can become one of your greatest assets when fundraising.

Connectors allow you to leverage and add more nodes to your network and exponentially increase your ability to meet and raise capital from Limited Partners. These can be Founders, other Venture CapitalistsLimited Partners, and anyone who can connect you to a pool of High-Net-Worth Individuals (HNWIs) that are willing to invest in the asset class.  

Refer to our guide on ‘Utilizing Connectors‘ for a comprehensive breakdown to mastering this powerful fundraising method.

Events and Conferences

Events and conferences are a relatively good way to expand your network. However, your primary use of venture conferences is usually to pitch to your LPs who have made some level of commitment. Though conferences such as Slush, TechCrunch Disrupt, South by South West, and RAISE can be a great medium for pitching LPs, it would be a sub-optimal strategy to attend them for the sole purpose of finding new LPs. This is a costly mistake made by some new fund managers and can divert them from their fundraising efforts. As stated before, a large bulk of your investors typically come through 1st and 2nd-degree connections you have as well as your close acquaintances, so this can be your initial area of focus.

These conferences will play a part in your fundraising process, though it will be much later when you have found a significant amount of LPs and are in the process of pitching. When you have substantial interest from LPs, you can refer to our ‘How to Pitch Limited Partners’ article, which shines a light on this process and guides you in pitching these LPs.  

 

Cold Outreach

Even when you are not fundraising, you can aspire to expand your network and build new relationships. Cold outreach can be an effective way to do this and is utilized by some of the most seasoned Venture Capitalists. The caveat is that running a cold outreach campaign can be meaningless unless implemented correctly. In your cold outreach, you can target HNWI and Family Offices, as typically, they are the most suited investors for new fund managers. This is outlined in our article “The Best LPs for New Fund Managers“. Typically, large institutional investors and endowments do not invest in new fund managers who manage small funds. Therefore it is un-optimal for you to focus your efforts in building long-term relationships there.

When focusing on HNWIs and Family Offices, you can be very particular in whom you target and your messaging as to not generally solicit. Remember that the goal here is to build long-term relationships and not advertise your fund to the masses. As previously mentioned, LPs can be very illusive and hard to find on the internet. To master the process of finding new LPs and converting them, refer to our other guide in our How to Find LPs series on ‘Conducting Cold Outreach.

This content is provided by VC Lab, the venture capital accelerator. 

The free 16 week VC Lab program provides guidance, structure and a network to complete a fund closing in 6 months or less. Since mid 2020, VC Lab has helped launch 83 venture capital firms around the world.

Categories
Uncategorized

How to Pitch Limited Partners

The world of fundraising and pitching has changed considerably for entrepreneurs and fund managers since the pandemic. Raising capital from limited partners is in a state of flux and duality. Consequently, it is advised that fund managers master pitching both virtually and in person

However, this is not necessarily a bad thing. Fund managers can now be in contact with and pitch more limited partners than before. Though some limited partners are exclusively investing in fund managers they meet in person, the majority of LPs are open to a hybrid approach.

Typically, the online to offline meetings is now around 70% to 30% respectively. LPs will usually meet with fund managers remotely and will then request an in-person meeting. LPs who have not taken virtual meetings have been shut down by the pandemic and are slowly starting to allocate capital.

At VC Lab, we’ve helped many venture capital firms raise funds from LPs and launch fund successfully around the world. Here are some of the best practices we’ve found on pitching LPs both remotely and in person.

Pitching Virtually

As stated before, when first engaging with LPs, usually a series of initial remote meetings is the norm. When pitching virtually, you can considerably increase the volume of LPs you are talking to and should strive to meet with as many as you can.

You should expect these meetings to last 30-minutes, though you should try to budget an hour of your time. Typically after 3-4 meetings, some sort of commitment from LPs can be expected. Whether that is to meet in person or something else depends on the situation and the LP.

As you would do in person have all your fund documents ready to present. It is better if all the partners in the fund are present at these meetings. It’s important to cover the basics before meeting your LPs. For example, it’s a great idea to practice your pitch multiple times, check your internet connection, and make sure you are not disturbed. You should own your pitch deck and be able to present it fluidly and answer any questions the LPs may have. When answering questions try to keep to the topic and provide brief and concise answers.  Also, make sure your camera and microphone are of high-quality and that you have a neutral background.

It is not guaranteed that LPs you are speaking with will follow through on commitments. It is usual for a relatively moderate percentage of LPs to not meet their commitments when you’re closing your fundraising. So once again, you should speak with as many LPs as you can both virtually as well as in person. When talking with LPs remotely, you should try to get as many leads as possible and gain some level of commitment to meet in person.

In-Person Meetings

We’re seeing a slow and gradual shift back to in-person meetings, though this number post-pandemic will not go back to 100%. When meeting LPs locally and in person, make sure to allocate your day for the meeting. However, you typically won’t meet all of your LPs in such a way. Consequently, you should endeavor to make a list of your LPs and discuss meeting in locations where both you and the LP are comfortable. In these discussions make sure both parties come to an agreement with regard to Covid protocols

A neat way to hack this process is to schedule your meetings with  LPs around events and conferences such as Slush, SXSW, TechCrunch Disrupt…etc. This is also a good way to frame your ask. If said LPs are also attending the conferences, it gives you a higher chance of meeting them and getting funded. This method will allow you to meet a larger percentage of your potential LPs and save time flying back and forth for one-off trips enabling you to focus on other important operations of your fund. In these conferences, you can also be introduced to and meet new potential LPs and build new relationships to add to your existing ones

When preparing to attend such an event, it is advised to be provident. Try to brush up on the local etiquette and covid protocols. For example, some conferences may require you to present a Covid passport. You should also have an ample supply of business cards and your fund documents. Create budgetary expense plans with regard to your stay and travel. Plan your trip and pick the specific events you will attend, then inform your LPs of the dates you will be available.

Finally, if you are going to an event with lots of LPs, creating your own event or after-party can go a long way. You can bring together your potential LPs and differentiate yourself from other fund managers. It is also a great way to expand your network and build credibility in the ecosystem.

This content is provided by VC Lab, the venture capital accelerator. 

The free 16 week VC Lab program provides guidance, structure and a network to complete a fund closing in 6 months or less. Since mid 2020, VC Lab has helped launch over 100 venture capital firms around the world.

Categories
Uncategorized

How to Build a Venture Team

In our series examining the intricacies of building a successful and enduring venture firm, we will explore the minutiae of forming a venture team that can capitalize on market opportunities. 

Across the whole organization of a venture capital firm, there is no single position endowed with greater responsibility than that of a managing partner. It is the responsibility of the managing partner to outline a thesis of capturing value in the market and to create a team capable of high-level execution with a culture of bold risk-taking.

The nature of venture capital necessitates that those in the firm often take on the role of investor, negotiator, diplomat, or any combination thereof, as a situation might dictate. However, all members are expected to act autonomously and make decisions that uphold its policies, values, and reputation and serve as its representatives when encountering founders and investors. 

Consequently, every team member within a venture firm will ideally fit into the firm’s culture and bring unique knowledge that their peers cannot. Building a venture team can, therefore, be an incredibly complex and multivariate task. As such, Managing Partners may want to consider optimizing towards a set of criteria for long-term success. 

Top 3 Factors to Optimize

Performance

Funds are typically judged on their returns to LPs at the end of their tenor. For many LPs, this can be the single most important metric of success.  When forming a team, it can be beneficial for fund managers to consider each team member’s past track record and future potential. As outlined in an interview with VC Lab, Steve Jurvetson points out that an investor’s past performance is a 6X better predictor of future success than the fund the person was previously at. Fund managers may want to consider this when weighing an individual who has a better track record to someone who is coming from a name brand VC, who has not performed as well.

Sequoia Capital’s Doug Leone, who created the firm’s ‘Ten Tenets’ when he took over as Global Managing Partner, states in an interview with ‘Acquired podcast’ that the number one factor for them is performance. He says that if a person doesn’t have one, the other nine do not matter. He goes on to explain that their firm is not a family but rather a team

Firstly, new fund managers may want to ensure that each team member is a net contributor to the team and brings value to the table. It can be advantageous if each member of the team has some unique vision and insight, which will lead to finding a winning startup that will return the entire fund or more.  

Though performance is the number one goal of most VC funds, it is hard to achieve. In venture capital, performance is measurable; however, there is around a 10-year time lag, making an assessment of performance tricky in the short term. Due to this, new fund managers can look to optimize for other factors to ensure long-term performance.

Culture

Culture is the fabric that holds you together

Doug Leone, Sequoia Capital

When forming a team, a Managing Partner may want to foster an appreciation for different perspectives, personalities, and market views. However, new managers may want to act with care to not compromise on culture and fit

In the aforementioned interview, Steve Jurvetson talked about the importance of culture. He drew on examples such as Apple, Google, Oracle ..etc, who came from dynamic duos that provided a healthy balance to each other and set out a winning culture. A strong culture can often mean that the team wholeheartedly believes in and is obsessed with the mission

New fund managers may want to consider instilling and fostering an atmosphere of debate and respectful discourse. Funds with rigid hierarchical structures tend not to have a climate of discussion, and new members have the role of subordinates rather than equals who can freely voice their opinions. This open climate leads to better decision-making, and the so-called battle of ideas usually triumphs over more rigid forms of decision-making

When hiring and forming a team, it can be provident to be very selective about how an individual fits into the wider team and mission. The group of first hires will be responsible for hiring others in the future, so their selection and other biases can create a butterfly effect. This is why some of the best VCs in the world help their portfolio companies in hiring at the early stages of development.

Diversity

Statistically, diversity leads to better performance, whether it’s diversity in gender, race, socio-economic background or domain expertise

Steve Jurvetson, Future Ventures

As shown in the series of three reports by McKinsey & Co, diverse teams tend to outperform homogeneous teams with similar backgrounds, whether that is gender or ethnicity.

Therefore,  as shown by independent studies, it can be beneficial for fund managers to impart an appreciation of diversity throughout their team. This is because diversity often leads to differences in views and vision of the future. In a collaborative and open team, this can lead to better decision-making in the long term and, therefore, better performance

In our exclusive VC Lab AMA, seasoned fund manager and mentor, Paul Bragiel stressed the importance of diversity. As shown in the Venn diagram of domain expertise below, the desired cross-section would ideally be small as possible between the team members.

yfAvyMnbGZpdAohq5t5HqRnLUc KVzKKVRC pA98NC0Drvnnh2lobX73kVlwf Rz4gLRbtwXk145Ecvk0iNnOyRAcPZfTIbZduu eSwIr9K SAJdnAFRmlLqXJF Ewemq6oq5OKM
Domain Expertise Venn Diagram

This is because venture capital has a much broader domain today than ever before. It can be advantageous if each team member is an expert in their field and contribute something the rest cannot. When forming a venture team, it can be important that all members have a unique alpha on a certain market, technology, business model …etc, to identify unique investment opportunities the rest of the market has not.

This content is provided by VC Lab, the venture capital accelerator. 

The free 16 week VC Lab program provides guidance, structure and a network to complete a fund closing in 6 months or less. Since mid 2020, VC Lab has helped launch over 100 venture capital firms around the world.