Fund of funds: origins, evolution and deep dive with Michael Kim | E1890
This Week in Startups
Jason Calacanis
4.2 • 1.4K Ratings
🗓️ 31 January 2024
⏱️ 62 minutes
🧾️ Download transcript
Summary
This Week in Startups is brought to you by…
LinkedIn Marketing. To redeem a $100 LinkedIn ad credit and launch your first campaign, go to http://www.linkedin.com/thisweekinstartups
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Lemon.io - Hire pre-vetted remote developers, and get 15% off your first 4 weeks of developer time at https://www.Lemon.io/twist
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Today’s show:
Cendana’s Michael Kim joins Jason for a deep dive on fund of funds (3:32), how to examine alpha, beta, and quality indices in early-stage investing (28:38), current market trends, future startup outlook (45:11), and more!
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Timestamps:
(0:00) Michael Kim joins Jason.
(3:32) Overview of Fund of Funds, their Strengths and “Achilles heel”.
(7:01) Attraction factors for investors in pre-seed and seed startups.
(10:42) LinkedIn Marketing - Get a $100 LinkedIn ad credit at http://www.linkedin.com/thisweekinstartups
(12:04) The rise and definition of “micro VCs” with insights by Michael Kim.
(15:16) How the early seed stage carved a niche and its growing appeal to LPs.
(22:07) Squarespace - Use offer code TWIST to save 10% off your first purchase of a website or domain at http://www.Squarespace.com/TWIST
(23:12) Fund enablers and the importance of “consistent returns”.
(28:38) Examining alpha, beta, and quality indices in early-stage investing.
(34:21) Lemon.io - Get 15% off your first 4 weeks of developer time at https://www.Lemon.io/twist
(35:29) The significance of portfolio management as networks and building a ‘why' for founders to pick you as an investor.
(41:25) The value and longevity of investor networks.
(45:11) Current market trends, future startup outlook.
(48:08) Things have shifted and Michael explains why seed is the new series-A and pre-seed is the new seed.
(52:10) Demographics of founders seeking investment.
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LINKS
Check out Cendana Capital: https://www.cendanacapital.com/
Watch other episodes with Micheal Kim:
- E1075: https://www.youtube.com/watch?v=SSOhe-FnTJE
- E1879: https://youtu.be/1Dcu5BfnE_c?feature=shared
Check out the Liquidity Podcast: LiquidityPod.com
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Follow Michael:
X: https://twitter.com/MKRocks
LinkedIn: https://www.linkedin.com/in/michael-kim-cendana-capital/
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Follow Jason:
X: https://twitter.com/jason
Instagram: https://www.instagram.com/jason
LinkedIn: https://www.linkedin.com/in/jasoncalacanis
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Thank you to our partners:
(10:42) LinkedIn Marketing - Get a $100 LinkedIn ad credit at http://www.linkedin.com/thisweekinstartups
(22:07) Squarespace - Use offer code TWIST to save 10% off your first purchase of a website or domain at http://www.Squarespace.com/TWIST
(34:21) Lemon.io - Get 15% off your first 4 weeks of developer time at https://www.Lemon.io/twist
*
Check out the Launch Accelerator: https://launchaccelerator.co
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Check out Founder University: https://www.founder.university
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Subscribe to This Week in Startups on Apple: https://rb.gy/v19fcp
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Great 2023 interviews: Steve Huffman, Brian Chesky, Aaron Levie, Sophia Amoruso, Reid Hoffman, Frank Slootman, Billy McFarland
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Check out Jason’s suite of newsletters: https://substack.com/@calacanis
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Follow TWiST:
Substack: https://twistartups.substack.com
Twitter: https://twitter.com/TWiStartups
YouTube: https://www.youtube.com/thisweekin
Instagram: https://www.instagram.com/thisweekinstartups
TikTok: https://www.tiktok.com/@thisweekinstartups
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Subscribe to the Founder University Podcast: https://www.founder.university/podcast
Transcript
Click on a timestamp to play from that location
| 0:00.0 | These founders, as you know best, with Travis, for example, they would walk through walls to get it done. |
| 0:05.0 | Right? And so what you actually saw in, say, 2021, at the peak was a lot of tourist founders. |
| 0:12.0 | My friend started a company, so I'm going to start a company. |
| 0:14.0 | Or in the fund world, we actually saw a lot of tourist fund managers. |
| 0:18.0 | They're like, hey, my friend just raised a $10 million seed fund. |
| 0:20.0 | I'm going to do that too. |
| 0:22.0 | Yeah. |
| 0:23.0 | And I think now it's a lot of them have actually been flushed out. |
| 0:25.0 | So that's why I'm saying it's a return on normalcy. |
| 0:28.0 | Valuations will know where the entry points should be from public markets on down the playing field is set and people |
| 0:35.0 | are ready to go on the offense. We went from the ridiculous cappuccino to a nice flat white. |
| 0:39.9 | You know when it got ridiculous people were like having the foam wars in the |
| 0:42.8 | cappuccino world and you're like there's about four ounces in here and |
| 0:45.9 | about eight ounces and height of cappuccino foam. |
| 0:49.2 | Right. All that gets blown off in a bad market and then you're just drinking the good stuff the good |
| 0:54.0 | stuff. This week in startups is brought to you by LinkedIn ads to redeem a |
| 0:59.6 | $100 LinkedIn ad credit and launch your first campaign, go to LinkedIn.com slash Angel Pod. |
| 1:07.0 | Squarespace, turn your idea into a new website. |
| 1:10.7 | Go to Squarespace.com slash Twist for a free trial. |
| 1:14.0 | When you're ready to launch, use offer code Twist to save 10% off your first purchase of a website or domain. |
| 1:20.0 | And Lemon.io. |
| 1:22.0 | Need to speed up your product development without draining your budget? |
... |
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