How AI is Shaping the Future of Venture Capital
RSVP for April 30th
1

Asked by

Community Member

on

in

Fund Operations

What are your thoughts on the Solo Fund Manager versus Multi-Fund Manager Approach?

My experience with Venture Capital has seen funds that operate with a single fund manager and others with multiple fund managers. Often, performance is very similar and each respective fund sees the value in their own approach. As a third party, is there any major benefits going down the single fund manager or multi-fund manager approach?
1 See in Base
0

Answered by

Mike Suprovici

on

It is critical for Managing Partners (founders of venture capital firms) to partner with people that they know extremely well and that they have had an extensive long-term working relationship. Partner breakups in VC firms have dire consequences given that these firms are 15 - 20 year commitments at a minimum. Therefore, if the choice is between being a solo GP or partnering with someone who you don't know extremely well, the best choice is often to be solo.

Join the Leaders of Venture 2.0

Our graduates are creating disruptive capital with exceptional expertise, ethical investing practices, and exceptional returns. Whether you're launching your first fund or scaling an established firm, VC Lab provides the tools, network, and support needed to succeed in today's venture landscape.

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?