Greg Bohlen on what does an LP look for in a venture capital fund manager
Greg Bohlen is a managing partner at Union Grove Venture Partner who has invested in top VC funds like Lightspeed, Founder Collective, Mayfield Fund, Battery Ventures and top startups like Poshmark, Beyond Meat and many more late stage companies.
LP Investing is a very hard industry to prepare for. Tell me about how your past experiences have helped you to be in the Institutional fund manager role. It is said that venture capital investing is all about identifying patterns in time. Yet some of the bigger ideas are unpredictable and sometimes those investment decisions can be non-consensus among Partners. Tell us about how to look at investment in Funds as LP, what kind of returns are attracting you? What is your investment thesis? And how has the market changed in the last 5 years and in the last 3months? Creating companies with higher leverage that are betting on certainity, aka Pump money into startups with higher burn rate to scale faster and run at 100m/hr. Do you think we will see a change in venture investing to bring more profitability, ARR in this crisis? Venture Capital is one asset class which is also cyclical. The boom-bust cycle, appetite for high risk. Considering time diversification where above-average returns tend to offset below-average returns over long investment horizons. How do you separate Union Grove Venture Partner from other fund of funds? What are the 5 stop signs in fund investment and entrepreneur investment meetings? In a time like this when idiosyncratic risks play a bigger role, can you talk about the systemic risks in your type of investment platform. What is the advice you wanna give to some of the emerging fund managers? “It isn't the mountains ahead to climb that wear you out, it's the pebble in your shoe.”, said my hero Edmund Hillary. You said the same line to me, why do you think so and what it takes to be successful in this industry.