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How to start a VC fund

geoffreywoo.com · 2,266 words · saved by 1 readers

All venture capital firms sell the same product: financial returns to LPs. GPs take LP money to buy shares in promising startups at a low price and then sell those shares later at a higher price. I run a successful VC fund with Jake Paul (Anti Fund), and I’ll summarize my learnings here so you can start your own VC fund. GPs market themselves by demonstrating differentiation across three dimensions: Dealflow is VC jargon for having friends who will tell you about a deal. VC’s obsess over their dealflow and their pipeline of prospective investments because they can’t invest in something if they never saw it. Your dealflow pipeline can be as simple as your list of your smartest college friends to your list of OpenAI and Deepmind researcher friends who are about to quit and start the next big AI company. Second order, your dealflow system can be your shortlist of industry friends who tell you about their best deals. And this cascades on and on and can be arbitrarily sophisticated. The peo

All venture capital firms sell the same product: financial returns to LPs. GPs take LP money to buy shares in promising startups at a low price and then sell those shares later at a higher price. I run a successful VC fund with Jake Paul ( Anti Fund ), and I’ll summarize my learnings here so you can start your own VC fund. GPs market themselves by demonstrating differentiation across three dimensions: dealflow i.e. seeing the right deals taste i.e. knowing what you see access i.e. winning once you know it Dealflow is VC jargon for having friends who will tell you about a deal. VC’s obsess over

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