Alternative ways for junior VCs to build track record with Mack Kolarich (VP @ Assure)

  • Managing SPVs is more complex than you think. When it comes time to launch your first SPV, you want to go with an SPV provider that has seen everything before.
  • SPVs aren’t just for VCs. Real estate funds, crypto funds, broker dealers, and others use SPVs to pool funds.
  • 50% of funds admitted to sacrificing diligence to get into deals. This was one of the takeaways from the survey we ran with Assure earlier this year on how junior VCs are looking at special purpose vehicles.
  • The main reason that investors aren’t building their personal track record is a lack of capital. SPVs offer a way around this.
  • Syndicate leads are competing for LP attention today. LPs today are backing 20-30 different syndicates, and this optionality on the LP side is making it harder to get deals done.
  • The number of family offices participating in SPVs has dropped in half over the past year.Β However, those that have stuck around have doubled the size of their investment.