Reserves for Emerging Managers
John Felix of Pattern Ventures argues that emerging venture capital managers struggle to deploy reserves effectively because they lack timely, reliable data on their portfolio companies. While larger funds receive regular updates through board meetings and investor reports, micro‑funds writing $100‑500K pre‑seed checks depend on sporadic founder communication. This information gap pushes them toward blind reliance on Tier 1 signals or gut instincts, which are not analytically rigorous. Felix suggests a different playbook: make larger initial checks to secure ownership and use single‑purpose SPVs for de‑risked follow‑on rounds, as illustrated by Tenacity Fund I’s reserve‑free model.
Are Solo Founders Venture Backable?
The article challenges the prevailing VC bias against solo founders, arguing that founder splits are common and the real bet is on the "Alpha" founder who drives vision and execution. It disputes the 50‑50 equity split dogma promoted by accelerators...