This Week in Startups E1055: Hustle Fund Co-Founder & General Partner Elizabeth Yin on her unique portfolio strategy, attracting first-time LPs, optimism for post-COVID fundraising, dealing with pro rata as a smaller fund & more!
May 8, 2020
Elizabeth Yin, Co-founder and General Partner of Hustle Fund, shares her innovative portfolio strategy focused on attracting first-time LPs and high-frequency investing. She discusses the complexities of fundraising in the current climate and how COVID-19 has shifted startup strategies. Elizabeth also dives into the challenge of maintaining pro-rata stakes as a smaller fund and what to look for when deciding to make follow-on investments. Plus, insights on the increasing ability of founders to influence investor decisions make this conversation one to remember!
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Hustle Fund Fundraising
- Elizabeth Yin pitched Hustle Fund to over 700 people, mostly in person.
- Roughly 10% of those pitched became LPs in the $11.5 million fund.
First-Time Fund Investors
- Most of Hustle Fund's LPs were first-time fund investors.
- This presents both an opportunity to tap a new investor pool and a challenge in educating them about risk.
Hybrid Portfolio Strategy
- Hustle Fund uses a hybrid portfolio strategy, combining high-frequency investing with concentrated VC portfolios.
- They start with small $25,000 checks and later invest up to $250,000 in promising companies.