Emerging Fund Managers: Balancing New Deals vs. Reserves for Follow-Ons in Startup Portfolios?

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May 03, 2023

Fund Operations

Emerging Fund Managers: Balancing New Deals vs. Reserves for Follow-Ons in Startup Portfolios?

Is an emerging fund manager expected by LPs to have 1/3 initial investment 2/3 reserves for follow-ons for breakthrough portcos? Or is an emerging fund manager rather expected to build a platform by maximizing the number of startups (relevant to the thesis) in portfolio with very low reserves for follow-ons?

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