This Week in Startups E1075: Cendana Capital’s Michael Kim on investing in Seed funds as a serial LP, Robinhood as an acquisition target, greatest Seed funds of all time & more
Jun 16, 2020
Michael Kim, Founder and Managing Partner of Cendana Capital, dives into the world of seed-stage investments. He explains what a fund of funds is and the pivotal role they play in portfolio construction. Kim shares his insights on ownership percentages, what makes a phenomenal seed fund manager, and the intriguing dynamics of secondary sales. He also discusses Robinhood as a potential acquisition target and reflects on recent shifts in the investment landscape post-COVID, emphasizing the golden opportunity for early-stage investments during these turbulent times.
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Ownership is Paramount
- Prioritize ownership percentage when investing in seed funds.
- Aim for 10-20% ownership to significantly impact fund returns upon exit.
Ideal Fund Manager Profile
- The ideal seed fund manager often has entrepreneurial experience.
- They possess credibility and the ability to lead investments, attracting founders.
Diligence Anecdote: Kirsten Green
- Michael Kim diligenced Kirsten Green by calling her portfolio CEOs, including Warby Parker founders.
- Their positive feedback and belief in her ability to lead larger rounds solidified the investment.