Across every segment of investing...
The more relationships matter, the greater the market inefficiency. The more skill, reputation, and stories matters, the higher the dispersion of outcomes and the more important manager selection becomes.
The fertile soil for outperformance.
The more relationships matter, the greater the market inefficiency. The more skill, reputation, and stories matters, the higher the dispersion of outcomes and the more important manager selection becomes.
The fertile soil for outperformance.
Applies to acquiring capital and investing it.
Gatekeepers require plausibility. LPs have career risk and are afraid of looking dumb. Connections open the door and stamp the hand. Track record and story-telling open the checkbook.
Learned the hard way: fundraising is a skill.
Gatekeepers require plausibility. LPs have career risk and are afraid of looking dumb. Connections open the door and stamp the hand. Track record and story-telling open the checkbook.
Learned the hard way: fundraising is a skill.
Recently asked a top VC about their edge, expecting some combo of technical chops and intelligence. Nope.
Answer: “Every prospect is encouraged to ask any past portfolio company about us. They make a few calls and we instantly become the frontrunner.”
Relationships matter.
Answer: “Every prospect is encouraged to ask any past portfolio company about us. They make a few calls and we instantly become the frontrunner.”
Relationships matter.
This is why I believe relationships are the only sustainable edge in investing. Information advantages perish, often quickly.
Being outrageously reliable, truly caring for people, and helping others win is pure alpha. And, it makes life a hell of a lot more fun.
Being outrageously reliable, truly caring for people, and helping others win is pure alpha. And, it makes life a hell of a lot more fun.
