Here is how Limited Partners investing in Venture Capital assess a firm's Partners.

Myrto LalacosMyrto Lalacos • Following • FollowingEx-VC turned VC Builder | Principal at VC LabEx-VC turned VC Builder | Principal at VC Lab2w • 2 weeks ago

Here is how Limited Partners investing in Venture Capital assess a firm's Partners.

🟢 Green Flags

✦ Anyone who knows them speaks very highly of them.
✦ The Partners are clear in their communication and inspire a high level of trust.
✦ They have significant experience and notable achievements relevant to the fund's investment thesis.

🌕 Yellow Flags

✦ The Partners are building a generalist fund without a clear focus or differentiation in the market.
✦ Their resume shows short role tenure and frequent bumps. VC is a lifelong career, can they commit?
✦ They are not interested in raising future funds, what is the incentive to manage the present fund for the next 10 years?

🟠 Orange Flags

✦ The team dynamic is not great, and the role division is unclear.
✦ None of their investments have been growing rapidly - are they really exceptional pickers and backers?
✦ They have not proven they can lead or win competitive deals. It's easy to spot a good deal, the question is can they get in?

🔴 Red Flags

✦ The Partners lied about or misrepresented their track record or experience.
✦ They displayed unprofessional behavior or withheld important information.
✦ Signs they cannot raise the target fund size - can they set realistic targets and execute on those?

I'm trying to bring to life how LPs conduct due diligence on the Partners of VC firms.

But we're just scratching the surface...

For those wanting to go deeper on the diligence Limited Partners carry out on VC funds, I've linked additional resources below!

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✍️ Myrto Lalacos
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