PE/VC Hybrid Model

searcher profile

August 23, 2022

by a searcher from New York University - Leonard N. Stern School of Business in New York, NY, USA

Does anyone know of any funds that are blended VC backed startups and positive cash flow ongoing concerns, i.e., PE/VC hybrids? One of my constraints is that I am invested in a few startups but am looking to secure funding for small businesses as well.

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Reply by an investor
from Columbia University in Jacksonville, FL, USA
This is a difficult bridge to cross. Most LP's (especially institutional ones) want their risk in individual buckets and not style-drift.
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Reply by a searcher
from New York University in New York, NY, USA
Thanks Leigh - I can definitely understand that perspective and if I were looking to find institutional investments and what covenants regarding style drift risks are in place. At the same time, I posed this question to one of my mentors and said that he has definitely seen that. If the other people that are in a syndicate of my creation are aligned on stage and thesis, it wouldn’t be a bad idea. What are your thoughts on syndicated deals among multiple investors, LPs if this was a creation of my own? Basis of fund size, legal and accounting fees and expected carry?
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