{"type":"rich","version":"1.0","provider_name":"Transistor","provider_url":"https://transistor.fm","author_name":"ACQ2 by Acquired","title":"VC Fundamentals Part 4: Portfolio Construction & Management (with Jaclyn Hester & Lindel Eakman of Foundry Group)","html":"","width":"100%","height":180,"duration":4468,"description":"We continue our VC Fundamentals series with Portfolio Construction & Management — how do you build and manage a fund's portfolio as a whole, beyond each individual portfolio company and investment decision? We brought in two of the very best people in the world to help us dissect this topic: Jaclyn Hester & Lindel Eakman of Foundry Group. Jaclyn and Lindel have been early and longtime LPs in some of the best venture funds in the world: USV, True, Spark — and of course Foundry — and now also sit on the GP side of the table at Foundry. Tune in for a master class on how the best VC managers think about generating and optimizing fund performance. \nTopics Covered:\n1. The bar for what \"good\" venture fund performance looks like in terms of returns:\nWhere venture sits on the spectrum of capital allocation options available to limited partners\nThe difference between \"gross\" and \"net\" fund returns and why IRR is still important\nThe distribution of returns across venture firms & funds — how many hit the performance bar — and the importance of diversification vintage years\n2. Portfolio construction: how do you allocate the fund's capital across companies?\nWhy have a \"portfolio\" at all vs. loading up on a few high conviction investments — and what an LP's incentives are for diversification vs. a GP's\nHow to determine overall $ size you should target for a fund\nConcentration vs diversification and the concepts of \"shots on goal\" and \"groups\" of high-potential companies within a portfolio\nFund reserves planning — are you \"making your money at the buy\", or able to buy up over time in your winners?\n3. Balancing playing offense and defense:\nThe upside potential of \"interstitial rounds\"\nWhether it's possible to save a company with more capital, and if pivots are a good idea\n4. Time allocation vs capital allocation within a fund:\nUnderstanding and managing your own cognitive biases\nWhy time & effort allocation across a portfolio rarely matches capital allocation (and shouldn't)\nWhy...","thumbnail_url":"https://img.transistorcdn.com/KzDqskE6HPXIsKBm4ZG61aBjmKwhyuCyfsigJhOl0i0/rs:fill:0:0:1/w:400/h:400/q:60/mb:500000/aHR0cHM6Ly9pbWct/dXBsb2FkLXByb2R1/Y3Rpb24udHJhbnNp/c3Rvci5mbS85N2Y2/ZWJiZmNiOWEwNWVj/MzExMzhhZGE3MzFk/NDVmYi5wbmc.webp","thumbnail_width":300,"thumbnail_height":300}