LP Survey for venture capital

1. Benjamin Black
Managing Director
and Co-Founder,
Akkadian Ventures
Samir Kaji
Senior Managing Director
First Republic Bank
What Does the Data Say?

2. Rules of RAISE
Our goal is for all participants to feel comfortable and open in order to encourage
an authentic exchange of information. To this end, we ask the following:
1. KEEP THE TRUST. We ask that all attendee’s input be kept confidential.
So please: no social media, blogging, or press release without prior consent.
2. BE PRESENT. Nobody likes talking to a roomful of people who are looking at
their phones.
3. KEEP IT REAL. Building a business from scratch is hard.
Let’s talk about the hard stuff and leave the self-promotion at home.

3. Massive Uptick in Micro-VC
In 2017, total number of US-based Micro-VC funds that successfully closed decreased 16% from 2016,
but total capital raised increased 5%

4. Fundraising Timelines
Fundraising timelines for successfully closed funds decreased in 2017!?

5. LP Survey Respondents
33%
31%
12%
16%
8%
Other: Corporates, Trusts, etc.

6. Typical Capital Commitment by LP Type
76%
12%
12%
38%
31%
31%
Single Family Office/HNI Fund of Funds
17%
17%
33%
33%
Foundation/Endowment
11%
33%
23%
33%
RIA

7. Approximately how many venture capital firms will you
add to your portfolio in 18-19?
48
3 2
76
5 5
16
3 3
27
3 3
0
10
20
30
40
50
60
70
80
Aggregate Average Median
Single FO/HNI
Fund of Funds
Foundation/Endowment
RIA

8. How many emerging managers (first or second fund) do
you expect to allocate to in 2018-2019?
36
2 1
48
3 3
11
2 2
20
2 2
0
10
20
30
40
50
60
Aggregate Average Median
Single FO/HNI
Fund of Fund
Foundation/Endowment
RIA

9. Thematic vs. Generalist Fund Preference
45%
23%
32%
53%
18%
29%
0
10
20
30
40
50
60
Thematic Generalist No Difference
Institutional
Non-Institutional

10. Investment Focus Preference
25%
39%
36%
12%
47%
41%
0
5
10
15
20
25
30
35
40
45
50
Geographically focused Agnostic on company
location
No Difference
Institutional
Non-Institutional

11. Fund Size Preference
53%
25% 22%
59%
23%
18%
0
10
20
30
40
50
60
70
Relatively smaller funds with a
focus on providing co-
investments and SPVs
Relatively larger funds with all
investments going into the fund
No Difference
Institutional
Non-Institutional

12. Should GPs actively pursue secondary transactions to
manage the portfolio, reduce downside risks, and shorten
the time to investor distributions?
Yes
84%
No
16%
Yes
No

13. Aside from poor investment decisions, what about
investing in venture capital funds do you find most
disappointing/annoying?
17%
8%
19%
17%
29%
0% 5% 10% 15% 20% 25% 30% 35%
Transparency
Team Turnover
Illiquidity
Strategy Drift/Investment Valuation
Premium Fees