venturecapital

In Venture Capital, we often marvel at the massive funds managed by industry titans today. But it is humbling to look back at their beginnings.

Most major VC franchises started with a modest first fund and early believers who took a chance on "unproven" GP talent.

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Looking at the data, Kleiner Perkins' first fund in 1972 was just $8M, while Sequoia Capital launched that same year with only $7M (I am sharing the source hereunder).

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The next generation of VC giants is likely starting humble right now, backed by believers who see potential before the track record fully materializes.

One call, one email should be sufficient for an LP to make up their mind as to whether or not they want to back this new VC firm with their Fund 1.

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Source: https://www.startup-book.com/2009/01/09/returns-of-venture-capital/

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In venture capital, for new and emerging GPs and LPs alike, there is an important lesson here about patience, vision, and the power of backing early teams that seem talented.

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