Should VCs Scale? | El Pack w/ Screendoor | Superclusters

The entire Screendoor team joins Superclusters on El Pack to answer your questions on how to build a venture capital fund. We bring on three GPs at VC funds to ask three different questions.
Should VCs Scale? | El Pack w/ Screendoor | Superclusters
The Screendoor team is a powerhouse of experienced LPs, bringing together institutional investment experience that spans over a decade. Lisa Cawley, Layne Johnson, and Jamie Rhode have each built institutional venture programs within innovative family offices, financial institutions, and pensions. They have invested in venture capital across stages, sectors, and geographies, and in particular are known as a go-to for emerging managers.

SELECT QUOTES FROM THIS EPISODE:

“My original intention was never to target emerging managers. My intention was actually to target funds that were the first institutional check into a startup because I was looking for a way to compound capital at an extremely high rate. And that just led me to backing emerging managers because finding a fund that was willing to invest at the pre-seed/seed consistently over a very long term either meant by the time they had a track record that underwritable with DPI, I couldn’t get in or they were an established manager that was slowly creeping up into bigger and bigger fund size so they were closer to Series A and Series B. What I ended up realizing is to go access that part of the market, I had to do emerging managers.” – Jamie Rhode

“A lot of what we do in underwriting is backward-looking, but really in VC, you want to be forward-looking. So it’s really important to be taking in those datapoints, but if you’re making a majority of your decision on those backward-looking datapoints, I would argue that you’re probably missing the mark when it comes to emerging managers. You actually want to be asking how do I know this firm–this team–is still going to have an edge in, inevitably, what would be a new market environment. There are going to be new competitive forces. There are going to be new technologies–new innovation. New at every level.” – Lisa Cawley

“I’m a firm believer that if you are waiting to see the proof smack you in the face, you’re actually not participating in the proof. You’re not getting that performance. You’re not getting those returns. You’re sitting and you’re waiting. And by the way, everyone else is doing the same thing, so you’re competing against them. Just because someone can identify that’s a great brand at that point, it doesn’t mean just because you have capital, you can get access.” – Lisa Cawley

“Don’t get swayed by capital.” – Jamie Rhode

“You can’t be all things to all people.” – Lisa Cawley

“Scaling is not synonymous with increasing fund size. To me, scaling means you’re increasing in sophistication. You’re increasing in focus. And that’s really a sign of maturity and fund size is a byproduct of that.” – Lisa Cawley

“GP-market fit is so crucial and you want to make sure you’re setting yourself up for success by being able to shine in what you’re best at and what your background and experiences set you up for as well.” – Layne Johnson

“Speed to fundraise does not always equate to a strong investor.” – Lisa Cawley

Watch full episode: https://www.youtube.com/watch?v=S2CrFdWQTTc
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Screendoor
Screendoor
USA, United States
Screendoor is a venture capital fund of funds platform for the next generation of venture capital firms. Uniquely founded by accomplished GPs alongside institutional LPs with over a decade of experience, we invest anchor LP capital in new fund managers and provide them with curated mentorship from our iconic GP Advisors. Since inception, Screendoor has evaluated over 90% of new funds launched, giving the firm unmatched visibility into the early-stage VC landscape. Screendoor is both a signal and a partner, helping new GPs get in business and scale smarter to become an enduring firm. For LPs, Screendoor offers investors differentiated exposure, early visibility into rising firms and the notoriously opaque VC ecosystem, and a refined pipeline of transparent, direct relationships. We serve as an extension of LP teams to identify and access alpha before it becomes consensus so that institutions can build stronger, more effective venture portfolios with greater precision and purpose. Backed by long-term, patient capital, Screendoor is reshaping how the next generation of VCs get their start—and how great firms are built.
private equityfund of funds

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