This Week in Startups

Jordan Stein from Cresset Partners on VC dynamics, evaluating emerging managers, & more! | E1901

Feb 21, 2024
Jordan Stein, Director of Cresset Partners’ Venture Capital Investment Practice, shares insights from his extensive experience in the VC world. He discusses the firm’s motivations behind investing, the intriguing phenomenon of venture tourism, and the Power Law's influence on risk-taking. Stein also delves into the evaluation of both emerging and established VC managers, highlighting the significance of relationships and aligned values in investment decisions, along with innovative strategies for wealthy investors facing the venture capital landscape.
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ADVICE

Benefits of Co-investment Programs

  • Co-investments can blend down fees and generate faster DPI.
  • They allow investors to participate more directly in deals alongside fund managers.
INSIGHT

Cresset's Co-investment Strategy

  • Co-investments allow Cresset to leverage their ecosystem for due diligence.
  • They seek co-investments where general partners are fully committed, not leftovers.
ADVICE

Secure Returns by Liquidating Portions of Winning Investments

  • Liquidate a portion of winning investments, even if you anticipate further growth.
  • This secures returns and allows reinvestment in other promising opportunities.
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