Actually many of my 67 LPs want to use CapitalX as deal flow for more direct angel or later stage investments. You are welcome to invest in my fund too so you pick and choose from my portfolio and invest to make that part of your track record as well!
BTW - I just finished 1st quarterly close and raised $4.2m within 6 weeks. Feeling super thankful to my LPs' high conviction and fast commits, the same style I use when I invest in founders! I'll gladly add more LPs :)
Thanks for the response. It is definitely refreshing how out in the open rolling funds have been, and I appreciate the discourse.
1) This post was targeted to people who marginally qualify as accredited (like me), and don't have the money to commit 60k/year to a rolling fund, and also make direct investments. I agree (and mention in the article) that rolling funds could be a good fit as part of a larger, established portfolio.
2) Even if you had the money to do both, there is no guarantee that the rounds you get allocation in would have space/want other random names on the cap table. If CapitalX is getting in the most-desirable rounds, it is unlikely they will want to add more small checks.
3) Fundraising is about selling a narrative. Your angel investments have an amazing narrative (cold emails and fast commits to future unicorns). "I paid money to Cindy for deal flow" is not a good narrative. I can't imagine you would have been able to raise 4.2m (or any amount), with the latter narrative.
In sum, nothing I see suggests that rolling funds are actually preventing “disproportionate benefits for those who already have their foot in the door,” since they don't make sense for new investors.
Would you have told your 2015 self to put money into a venture fund, versus angel investing?
If I had 60k/year total to invest in venture, would a rolling fund be the best option?
Oh, if I could only choose one, and have time, and interested to invest, definitely direct angel investments. You are not my target LP and that’s ok. Not everyone should invest in other funds, traditional or rolling. You attack rolling to draw attention, and that’s not cool.
But, I encourage you to keep investing, doesn’t matter what you choose to invest in (could be public market), invest your own money so you know how your psychology works when there’s gain or loss.
To invest in funds is only for people who either don’t have time, or don’t believe they know how yet, or have extra capital.
Oh hi Cavan, thanks for your shout out :)
Actually many of my 67 LPs want to use CapitalX as deal flow for more direct angel or later stage investments. You are welcome to invest in my fund too so you pick and choose from my portfolio and invest to make that part of your track record as well!
BTW - I just finished 1st quarterly close and raised $4.2m within 6 weeks. Feeling super thankful to my LPs' high conviction and fast commits, the same style I use when I invest in founders! I'll gladly add more LPs :)
Hi Cindy,
Thanks for the response. It is definitely refreshing how out in the open rolling funds have been, and I appreciate the discourse.
1) This post was targeted to people who marginally qualify as accredited (like me), and don't have the money to commit 60k/year to a rolling fund, and also make direct investments. I agree (and mention in the article) that rolling funds could be a good fit as part of a larger, established portfolio.
2) Even if you had the money to do both, there is no guarantee that the rounds you get allocation in would have space/want other random names on the cap table. If CapitalX is getting in the most-desirable rounds, it is unlikely they will want to add more small checks.
3) Fundraising is about selling a narrative. Your angel investments have an amazing narrative (cold emails and fast commits to future unicorns). "I paid money to Cindy for deal flow" is not a good narrative. I can't imagine you would have been able to raise 4.2m (or any amount), with the latter narrative.
In sum, nothing I see suggests that rolling funds are actually preventing “disproportionate benefits for those who already have their foot in the door,” since they don't make sense for new investors.
Would you have told your 2015 self to put money into a venture fund, versus angel investing?
If I had 60k/year total to invest in venture, would a rolling fund be the best option?
My replies on twitter attached below
Oh, if I could only choose one, and have time, and interested to invest, definitely direct angel investments. You are not my target LP and that’s ok. Not everyone should invest in other funds, traditional or rolling. You attack rolling to draw attention, and that’s not cool.
But, I encourage you to keep investing, doesn’t matter what you choose to invest in (could be public market), invest your own money so you know how your psychology works when there’s gain or loss.
To invest in funds is only for people who either don’t have time, or don’t believe they know how yet, or have extra capital.
On that note, check out this great article to compare public vs private, big vs small vc funds https://oper8r.substack.com/p/seeing-the-present-of-emerging-micro
I've actually learned something here. Thank you.