Learn how to launch a Start Fund in a day with no setup fees.
Join the event on July 16th.
Previous Post
Next Post
0

Asked by

Community Member

on

in

Thesis & Presentation

Has Anyone Built a Non-Traditional Fund Focused on Dividends and Liquidation Events Instead of Unicorn Startups?

Hi everyone did anyone here built a fund that’s *not focused* on the traditional “venture-type returns” startups (100 - 10000x unicorn potential all from a sale / acquisition)? Based on our thesis we project we can achieve “venture returns” but from both dividends (in 80% of cases) and liquidation events (20% of cases). Or this is more of a private equity model? Thanks.
1 See in Base
0

Answered by

Community Member

on

Venture Funds invest in speculative private company equity for returns from an exit. This is a proven model globally. Factoring, investing in profits or buying tokens is not venture capital. Trying to buy profits is not a proven model, and the the only examples that have worked are in gaming. The problem is that most talented entrepreneurs don't want to sell profits, so you are left trying to convenience lower caliber entrepreneurs to cut you in on their profits.

Join VC Lab

VC Lab, the leading venture capital accelerator, empowers new and emerging managers worldwide to close ethical, high-performing funds in under six months. The program provides cutting-edge tools, expert mentorship, and a global network to raise more money in less time. Apply if you want to build a meaningful venture capital firm.

Apply Now
How do I start raising my first venture fund? What are the key considerations for becoming a Limited Partner?
How can I improve my emerging manager firm's deal flow? What strategies help attract institutional LPs?
How do I build a compelling investment thesis? What are best practices for portfolio management?
How can I differentiate my VC firm in a crowded market? What are the typical fund terms for emerging managers?