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Fund Economics

Is This Recommendation Suitable for All Fund Sizes or Just Small Funds Considering Power Law?

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May 03, 2023
I have checked your Investment Volume and Follow-on Chart. My question is whether this recommendation is just for small funds or for any fund. It seems the only way if you have 5M€-15m€ fund and 2 GPs but in case you may raise a higher fund size and taking into account the power law couldn´t / shouldnt the # of investments be larger? for example +20 investments for series A fund. Tks
1 answer
Accepted Answer
May 03, 2023
The recommendations taking into account fund size. We’re assuming larger fund sizes at later stages. This is just a guide and it’s ok if you deviate from it. At the Series A, the # of investments will be greatly affected by your time. Each partner can only sit on a finite # of boards. With your example above, each partner will have to sit on 10+ boards, which is a lot.

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