My Next Act: Democratizing Venture Capital

This post is by Jason Calacanis from Jason Calacanis

I’ve been lucky enough to participate in almost 20 venture capital funds as an LP — limited partner — over the past decade. 

Unfortunately, these funds have historically been impossible to access, even as a person of means.

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They are raised quietly and deployed slowly. 

If you miss the window of when a fund raises, which typically occurs in months, you have to wait years for the next fund to be offered.  

You are invited into these funds if you can provide value to the firm’s general partners, typically because you have expertise in a vertical, influence, or a network they benefit from having access to.

In my case, it’s because I invest in angel and seeds rounds, which means I’m on the cap table before later-stage funds invest. So this lets me provide warm intros and insights to them — namely, which startups they should pay attention to. 

On the margin, the two podcasts I host are helpful as well. 

Having helped drive the democratization of angel investing with my book, Syndicate, and course, Angel.University, I’m now setting my sites on venture capital. 

Investors must be accredited to participate in VC funds. In the United States, 10% of households are considered accredited investors and 1.5% are considered qualified purchasers. However, the funds with the most established reputations have been sold out for decades with the same institutional LPs (think university endowments, foundations, and retirement funds). 

With my fourth fund, (Read more...)