How LPs identify top emerging fund managers with Slipstream’s Alex Edelson | E1898

Feb 15, 2024

Join Alex Edelson, Founder and Managing Partner of Slipstream Investors, as he dives into the world of venture capital. He explains the unique role of fund of funds and why investors prefer this approach. The conversation highlights how early-stage funds generally outperform larger ones and the impact of ownership dynamics on returns. Alex shares insights on identifying winning startups and the crucial strategies for generating liquidity for limited partners, making this an essential listen for anyone in the investment arena.

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ADVICE

Tracking Conviction and Trends

Track your conviction level in companies and how they trend over time.
Use this historical data to inform future investment decisions and identify potential winners.

ANECDOTE

Secondary Sales Strategy

Jason Calacanis shares his experience with secondary sales in Calm and Uber.
He strategically sold portions at high multiples, returning capital to LPs while retaining ownership.

ADVICE

Buy/Sell Decisions

Evaluate every funding round as a buy or sell opportunity, even if no action is taken.
Track decisions for future learnings and consider selling if it returns the fund or better.

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Todays show:

Alex Edelson of Slipstream Investors joins Jason to discuss fund of funds and their place in the venture ecosystem (1:28), ownership in relation to fund size (8:34), picking winners (25:08), generating liquidity for LPs (40:08), and much more!

Timestamps:

(0:00) Slipstream Investor’s Alex Edelson joins Jason

(1:28) Alex explains what a fund of funds is and why people choose to invest in fund of funds rather than invest directly

(8:34) Why early stage funds overperform and ownership in relation to fund size

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(13:09) What Alex looks for when picking venture funds, ownership, and why people invest in fund of funds cont.

(19:49) Evaluating ability to compete for deals at seed vs pre-seed stage

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(25:08) Picking winners: Identifying promising companies early and tracking them

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(40:08) Generating liquidity for LPs and picking emerging fund managers

(56:47) Competing for deals at the seed stage, the differentiation between pre-seed and seed, and deciding when to double-down

(1:01:41) Alex turns the tables and asks Jason some questions. But, first why is optimal fund size important?

Follow Alex X: https://twitter.com/asedelson Check out Slipstream Investors: https://www.slipstreaminvestors.com/

Follow Jason:

X: ⁠https://twitter.com/jason⁠

Instagram: ⁠https://www.instagram.com/jason⁠

LinkedIn: ⁠https://www.linkedin.com/in/jasoncalacanis

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