E35: Ben Gallacher of Cannonball on "Value per Dollar Invested" and How it Predicts Fund Performance

Key Points

• Fund ones often perform well historically because those involved are not predictors but have a clear understanding of the current landscape, which informs their funding decisions for what needs to be built today.
• Emerging venture capital managers may underestimate the operational side of running a fund, such as back-office work and investor relations, which were typically handled by other teams in larger VC firms.
• In venture capital, a collaborative check-writing approach can allow emerging managers to punch above their weight class, as it enables them to participate in deals with leading firms and provides scalability for their fund strategy.