Emerging Manager Alpha At Scale with Michael Downing | E60

The most surprising data point to us was 70% of these emerging manager funds have an outlier. Now, we define an outlier as a company whose valuation is 30 times or more of what the valuation was when that small fund invested. Other people have different definitions of what an outlier is, but that's our baseline. Seventy percent of those funds had a company that qualified under that definition. We look at emerging managers as, you know, 60 million and less in terms of size of fund, right? So if you've got a 20 million, 30 million, 40 million dollar fund, that's an emerging manager. When endowments and pensions and traditional institutional guys look at that category, there's a physics challenge that just does not work for them. Typical pension, your smallest check you can write is 50 million dollars. That's not going to work. It's larger than the typical fund size, which is 30 million. Endowments, they require six years of track record. They don't do fund ones, and once again, they have a minimum check size that might be 20 million. So there are all kinds of physics issues that keep institutional guys out of this market. Tell me about your portfolio construction. We have this philosophy and thesis in terms of how we deploy capital into the small funds. We like to look at it as we're in the midst of this innovation super cycle. It looks a lot like 2008 to 2011. You have a depressed kind of macro environment where there's plenty of negative news and plenty of negative signals where people have been risk off for the last 15 to 18 months, very similar to 2008. At the same time, you have a fundamental innovation super cycle. In our case today, it's AI, defense tech that's, you know, starting to really move markets and create opportunities. For more ideas on how to raise venture capital in this market, make sure to subscribe below. Let's start with the capital extension program we announced with Sidecar. The launch of the capital extension program, the emerging manager category is one where we spend a lot of time. We have a fund that allocates part of its capital to investing in emerging manager funds, small sub-50 million dollar funds, and part of that capital goes into direct investments. What we heard over and over from these managers is one of their biggest frustrations is they invest at the earliest stages in companies that end up being outliers and growing and scaling to large sizes, but they don't have any capital to continue to invest in those companies when they do subsequent financing rounds, a Series A, a Series B, a Series C, etc. The capital extension program is basically one where small fund managers or syndicate leads can come to us when there's a later stage round or follow-on round happening in one of their portfolio companies. We will actually provide that manager the capital to participate in that follow-on round. We do it in the form of an SPV on Sidecar, and we split the carry with that manager or syndicate lead. Effectively, what we're trying to do here is help these small managers punch above their weight and recapture a lot of that value that historically has been given up to later stage funds that end up taking the vast majority of those investments that occur in those companies. So let's say you invested in the pre-IPO of Uber, you're a 30 million dollar emerging manager. How would someone partner with an MDSV? Here's a real use case. We have a small fund manager who contacted us in 2018. They were investing out of a fund that was all of 600k, and so obviously they were writing very small checks into companies. One of the companies that they wrote a 50k check into, fast forward, is now doing over 100 million in ARR, is growing very quickly, and is getting ready to do a Series D. This is obviously a later stage round. That fund manager's already done very well on their 50k check, but they have the opportunity to put more capital in that company, and we're pulling together 2 million dollars, basically giving them the 2 million to invest in that company and splitting the carry with the manager. As you said, 2 million. What is the range of checks? Yeah, we created pretty specific parameters here, although we're seeing what the market is asking for and adapting as needed. But we basically said, look, we're willing to write checks as small as 200k all the way up to 5 million for these opportunities. These are not pre-seed deals. These are not even seed deals. Those are the deals that we expect these syndicate leads and emerging managers to do on their own. These are mostly Series A through Series D companies. How late will you go? Series D is the latest stage company we've seen so far that's come through, and that'll probably be done at a 1.5 billion dollar valuation. So that's probably as late as we would go. I'm sure you have a lot of fund managers that are interested after this podcast. Hopefully, we'll 10x you, but even before then, I'm sure you have hundreds of— that's how you got the name, that's where the trademark. But let's say you have hundreds of opportunities. What is your first filter? There's a few different filters we look at. We tried to publish these on the page about the capital extension program so that people know the general parameters for what works and what doesn't work. Number one, what we're looking for is this is for software and technology companies. This is not for, let's say, a game studio or real estate deals or any other thing that falls outside of technology and software. Number one. Number two, when we talk about confirmed outliers in a portfolio, generally speaking, what that looks like is they're doing, call it, 10 to 12 million in revenue, recurring revenue or GAAP revenue a year. There's a growth rate that's at least 1x to 1.2x per year in terms of how fast the company is growing. The financing opportunity that the manager brings us needs to be an actual financing opportunity they've negotiated and secured. So it's either an upcoming round that's a Series B or Series C or whatever it may be, or it could be a SAFE or a convertible note that's occurring between those rounds. Anything outside of that, like secondary, is not what the program is intended for. How much of that signal is the lead investor? It's less important to us, quite honestly. What we do look at probably most closely is the product category, the technology category, and then the growth rate of the company. We've learned a lot of lessons over the years around product-market fit and N plus 1 growth and what kind of growth you need to see on a quarter-to-quarter basis and annual basis that would validate that a company's a true outlier and that they have a lot of growth left in them. So that's probably the biggest area where we really zero in and try to understand what that growth rate is. How big of a capital pool are you drawing for this program? Yeah, so we created a dedicated pool of 50 million to support the capital extension program. And just to give you kind of an overview on the structure here, we have a primary fund, which is our venture capital fund. Out of that fund, we make investments in emerging manager funds, and we also reserve capital to do direct investments. Before we publicly launched the capital extension program, we got a dedicated pool of 50 million that's just to support these deals. How much of this 50 million is left? I'll give you a real breakdown here, which is a little surprising even to us. We launched it a week ago. We got 23, I think maybe even 24 as of this morning, opportunities that came into us. The team immediately dug into those opportunities. Right now, it looks like four of those are ones we're definitely going to move forward with. Across those four, the average size is somewhere between one and a half million to two million. If we do all those, you know, call it 8 million of the 50 will be gone. Now, I will tell you the 50 was based on what we projected would be the demand for this, and so we will adapt as we see opportunities come through. But one point that may not be obvious in how the capital extension program was launched is we look at this pool o—

different definitions of what an outlier is but that's our Baseline 70% of those funds had a company that qualified under that definition we look at emerging managers as you know 60 million and less in terms of size of fund right so if

you've got a 20 million 30 million $40 million fund that's emerging manager when endowments and pensions and traditional institutional guys look at that category there's a physics challenge that just it does not work for them typical pension your smallest check

you can write is $50 million that's not going to work it's larger than the typical fund size which is 30 million endowments they require six years of track record they don't do fund ones and once again they have a minimum check

size that might be 20 million so there are all kinds of physics issues that keep institutional guys out of this Market tell me about your portfolio construction we have this philosophy and thesis in terms of how we deploy Capital

into the small funds we like to look at it as we're in the midst of this Innovation super cycle it looks a lot like 2008 to 2011 you have a a depressed kind of macro environment where there's plenty of negative news and and plenty

of negative signal where people have been risk off for the last 15 to 18 months very similar to 2008 at the same time you have a fundamental Innovation super cycle in our case today it's AI defense Tech that's you know starting to

to really move markets and create opportuni ities for more ideas on how to raise venture capital in this market make sure to subscribe below let's start with the capital extension program we announced with sidecar the launch of the capital

extension program the emerging manager category is one where we spend a lot of time we have a fund that allocates part of its capital to investing in emerging manager funds small sub 50 million doll funds and part of that Capital goes into

direct Investments what we heard over and over from these managers is one of their biggest frustrations is they invest at the earliest stages in companies that end up being outliers and growing and scaling to large sizes but they don't have any Capital to continue

to invest in those companies when they do subsequent financing rounds a series a a series B A series C Etc the capital extension program is basically one where small fund managers or Syndicate leads can come to us when there's a later

stage round or followon round happening in one of their portfolio companies we will actually provide that manager the capital to participate in that follow on round we do it in the form of an SPV onside car and we split the carry with

that manager or Syndicate lead effectively what we're trying to do here is help these small managers punch above their weight and recapture a lot of that value that historically has been given up to later stage funds that end up

taking the vast majority of those Investments that occur in those companies so let's say you invested in the preed of uber you're a $30 million merging manager how would someone partner with an mdsv here's a real use case we have a small fund manager who

contacted us in 2018 they were investing out of a fund that was all of 600k and so obviously they were writing very small checks into companies one of the companies that they rode 50k check into fast forward is now doing over a 100

million in ARR is growing very quickly and is getting ready to do a series D this is obviously a later stage round that fund managers already done very well on their 50k check but they have the opportunity to put more capital in

that company and we're pulling together $2 million basically giving him the $2 million to invest in that company and splitting the carry with the manager as you said $2 million what is the range of checks yeah we created pretty specific

parameters here although we're seeing what the market is asking for and adapting as needed but we basically said look we're willing to write checks as small as 200k all the way up to 5 million for these opportunities these

are not precede deals these are not even seed deals those are the deals that we expect these Syndicate leads and emerging managers to do on their own these are mostly series a through series D companies how late will you go series

D is the latest Stage Company we've seen so far that's come through and that'll probably be done at a $1.5 billion valuation so that's probably as late as we would go I'm sure you have a lot of fun managers that are interested after

this podcast hopefully we'll 10x you but uh even before then I'm sure you have hundreds of that's how you got the name that's where the trademark but let's say you have hundreds of opportunities what is your first filter there's a few different

filter filters we look at we tried to publish these on the page about the capital extension program so that people know the general parameters for for what works and what doesn't work number one what we're looking for is this is for

software and technology companies this is not for let's say a game Studio or real estate deals or any other thing that falls outside of technology and software number one number two when we talk about confirmed outliers in a

portfolio generally speaking what that looks like is they're doing call it 10 to 12 million in Revenue recurring revenue or Gap Revenue a year there's a growth rate that's at least 1X to 1 and a2x per year in terms of how fast the

the company is growing the financing opportunity that the manager brings us needs to be an actual financing opportunity they've negotiated and secured so it's either an upcoming round that's a series b or series C or whatever it may be or it could be a safe

or a convertible note that's occurring between those rounds anything outside of that like secondary is not what the programs intended for how much of that signal is the lead investor it's less important to us quite honestly what we

do look at probably most closely is the product category the technology category and then the growth rate of the company we've learned a lot of lessons over the years around product Market fit and N plus1 growth and what kind of growth you

need to see on a quarter-to-quarter basis and annual basis that would validate that a company's a true outlier and that they have a lot of growth left in them and so that's probably the biggest area where we really zero in and

try to understand what that grow growth rate is how big of a capital pool are you drawing for for this program yeah so we created a dedicated pool of 50 million to support the capital extension program and just to give you kind of an

overview on the structure here we we have a primary fund which is our Venture Capital fund out of that fund we make investments in emerging manager funds and we also Reserve Capital to do direct investments before we publicly launched

the capital extension program we got a dedicated pool of $50 million that's just to support these deals how much of this 50 million is left I'll give you the a real breakdown here which is a little surprising even to us we launched

it a week ago we got 23 I think maybe even 24 as of this morning opportunities that came in to us the team immediately dug into those opportunities right now it looks like four of those are ones we're definitely going to move forward

with across those four the average size is somewhere between one and a half million to two two million if we do all those you know call it 8 million of the 50 we'll be gone now I will tell you the

50 was based on what we projected would be the demand for this and so we will adapt as we see opportunities come through but one point that may not be obvious in how the capital extension program was launched is we look at this

pool of emerging managers as this incredible untapped resource that have proven themselves to be incredibly Adept over the years at identifying great companies at the earliest points but the real kind of you know Injustice in the market that's occurred here is 98% of

the capital that those emerging managers raise stops at the seed fund meaning even if they have an amazing outlier and a great company that's growing they very very rarely invest beyond that the average check size that we've kind of

researched across 400 plus funds the average LP check size that they get is 200k from usually a high net worth individual and so if your average LP is a high net worth individual gives you 200k and all of a sudden you have a $5

million opportunity to follow on in stripe work you whatever the company is that's doing incredibly well you can see how unreliable that methodology would be to be able to actually continue to invest in those companies what we're trying to do here is really formalize a

program to help these managers acrew more value get more of that return that historically they've been giving up to the seed funds series a funds and all the the bigger guys who are out there how big of an opportunity set is this

just to give you a little bit of background over the last few years when we created our fund that really does rely on and invest in this emerging manager category we did a huge amount of research across all these funds that

were in market and some that were coming into Market we also created an online community called the Promontory where it's basically an invitation only Community where small emerging managers can come in and connect with LPS and basically helps them fund raise get

checks from additional LPS for their fund the most surprising data point to us was that 70% of these emerging manager funds have an outlier now we Define an outlier as a company whose valuation is 30 times or more of what

the valuation was when that small fund invested now other people have different definitions of what an outlier is but that's our Basel line 70% of those funds had a company that qualified under that definition and so we've also seen that

at any given time there's roughly 7 to 800 of these emerging manager funds that are in Market looking to raise money there's another you know call it 800 to 900 funds might not be market so cumulatively you're looking at Universe

of call it 1,600 small emerging manager funds now the other Dynamic to look at here from a data perspective is as we've all experienced though you have this added Dynamic of there's new insurance coming into the market and there's other

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notes below to book a free no strings attached demo with deal today tell me about your team composition the basic team set up here there's four Partners at mdsv Capital my background is I co-founded six different software companies over a 28-year period in

Silicon Valley one of my other partners is from the world of fintech was early at PayPal then went to Facebook and helped them build their payments product So within the partnership we we cover a few specific genres then we have a team

of two analysts here who have particular expertise across B2B SAS and deep Tech so we try to cover you know as many of the categories as we can and then we have a slightly broader network of advisers who cover very specific areas

and actually some of these advisers are you know investors and LPS in other small funds so we have folks with an AI Special beer background we have other folks who are in defense Tech and other key area so if we get an opportunity and

it's in an area that we don't feel totally comfortable assessing we've got folks we can pull in to help do that analysis quickly so I send you an opportunity it's it's the next Uber it's Uber for pets and that's series D I'm

giving you the very last million dollars in the entire round it's it's a billion dollar round I'm giving you a million dollars what's the next step what is the best way that GP could interact with you and we tried to make this as easy as

possible knowing that all these emerging managers are very time constrained so we actually published a deal memo template which is just a set of about 12 bullet points that initially if you just fill out those 12 bullet points we can at

least take it through the first filter and say this is something we want to learn more about or this doesn't fit the program at all that template is listed on the sidecar site it's also on our website which is mdsv dovc under Capital

extension program and so that gives people an easy kind of guard rails for how to provide us the basic information once we get that information we immediately respond to whoever submitted it just letting them know we've got the

info as published in the announcement with sidecar we basically take five days to give them an answer on whether we want to participate or not you can see the the basic data points there which are pretty simple one page yeah which

tried to keep it one page well keeping it easy is part of the challenge here I will give you an example of a real opportunity that came in last week immediately emailed the guy back asked about four follow-up questions to the

manager who has access to an amazing opportunity they wrote one of the first checks into and tomorrow morning we're actually doing a call with the CEO of the company and it's only because this small manager who by the way doesn't

have a fund he just does spvs because he hasn't been able to raise a fund we're doing a call with the CEO who's good friends with him and the CEO just is going to answer some additional questions it looks like we will do that

deal so this is an important Point part of our hypothesis in this program is the last 18 months as I'm sure a lot of your viewers have experienced has been unbelievably difficult for emerging manager funds to raise any money

whatsoever as a matter of fact across I mentioned the 700 funds that we're kind of tracking closely across these 700 plus funds over the last 12 to 15 months we only know three who actually raised the targeted amount that they were going

after most everybody else is still still in Market still raising and most of them are adjusting down what that Target is maybe they were going out for a $40 million fund now it might be a $25 million fund now that is what it is the

market is tough LPS were sitting on the sidelines and not allocating money for a long time but part of our hypothesis is many of those fund managers are going to proceed leaning on spvs a lot more than they did previously deal by deal

activity is a perfectly valid perfectly reasonable way for them to you know push forward and make progress let me that a little bit for the listeners why why that's going on there's several factors the first aspect is the denominator

effect what does that mean that means that as private Investments have continued to rise in 21 22 and some of those marks have not been refreshed institutional investors are overweight on their private markets that means they sometimes not only can't add to new

managers or even existing managers sometimes they literally have to sell via secondary so there's just less dollars going after new relationships the second aspect is closely related in down markets like this LP tend to focus and tend to cut managers and focus more

on quality uh in Bull markets there's more of an openness to experiment and to see kind of these you know high risk High returns but in in bare markets you have more concentration that translates in terms of much less Supply by some

factors I believe we chatted on the liquidity podcast it went down something by like a third or fourth the amount of capital that was deployed in 2023 because there's less demand some emerging managers are not able to raise

at all and most emerging managers are raising less Capital that's absolutely right and and plus you have the situation where for many of these managers maybe they're going to close a much smaller fund than they thought but either way everybody's going to be

leaning on spvs to Simply make progress over the next 12 to 15 months and then you know hopefully things change and and you know they're able to to raise your funds we also know one other thing which is an important data point across the

700 plus funds that we've analyzed and track call it 50% of the capital is coming from family offices typically a single family office maybe 47% from Individual High net worth investors and a tiny 3 to 5% from what

we would call institutional investors and by that I mean fund of funds mostly endowments aren't 5% of capital of the 700 emerging managers exactly how do you explain that we look at emerging managers as really kind of you know 60

million and less in terms of size of fund right so if you've got a 20 million 30 million $40 million fund that's an emerging manager when endowments and pensions and tradition institutional guys look at that category there's a

physics challenge that just it does not work for them typical pension your smallest check you can write is $50 million that's not going to work it's larger than the typical fund size which is 30 million endowments they require

six years of track record they don't do fund ones and once again they have a minimum check size that might be 20 million so there are all kinds of physics issues that keep institutional guys out of this market and so there's

just a a series of challenges around fundraising that hopefully will get better over the next 12 months for the time being spvs are going to be more important Partnerships are going to be more important which is one of the

reasons why we've uh pushed Capital extension so tell me a little bit more about mdsv so this is just a $50 million pull of capital that you have what's the problem set there our core Venture fund which is a$ 25 million doll fund focuses

on investing in emerging manager funds and doing direct investment then we created this separate $50 million vehicle just for the capital extension program our kind of investment thesis and how we approach this is based on 20 plus years of being operators and

investors in Silicon Valley the partnership invested in many small funds over the years and leaned on those small funds as kind of the tip of the spear to find out about great companies and great entrepreneurs and Founders that lead to

further investment we institutionalized that a bit with mdsv capital not only put together the dedicated capital for this you know we we created the pretory online community for these managers to connect with LPS and then we also do a

series of events emerging Horizons which is a summit or emerging managers where they come together and they get to meet LPS we just had a dinner last week in Palo Alto where we had one of the uh senior product Executives from open AI

come and speak and at that dinner it was a group of family offices from Silicon Valley and a small group of emerging managers who attended so trying to support that ecosystem and create more kind of forward progress between LPS and

GPS is a big part of our strategy here tell me about your portfolio construction the $25 million fund of funds about about 2third of that 25 million is going into small funds we have this philosophy and thesis in terms

of how we deploy Capital into the small funds we like to look at it as you know we're in the midst of this Innovation super cycle it looks a lot like 2008 to 2011 you have a a depressed kind of

macro environment where there's plenty of negative news and and plenty of negative signal where people have been risk off for the last 15 to 18 months very similar to 2008 at the same time you have a fundamental innovation super

cycle in our case today it's AI defense Tech that's you know starting to to really move markets and create opportunities we were very active investing in early stage companies in the 2008 to 2011 period our only regret from that time period is that we didn't

invest in more of those companies because many of those companies ended up being generational outliers for us and so we have a sense of urgency right now to deploy Capital across small funds that are in specific categories we have

a cluster of AI related and Enterprise AI related managers we have a small cluster of Defense Tech related funds because we think that's an important movement that's happening right now we have a cluster of deep Tech related small emerging manager funds we think

deep Tech is a category that's been wildly underfunded we actually believe that the sweet spot is somewhere between 20 and 35 million in terms of size and we invest in fund one two and three typically we usually don't go beyond

fund three when you look at the emerging manager funds as a category there's a very significant amount of the return that comes actually consistently out of fund one out of that 25 million how many fund managers are are you looking to

deploy in out of this current fund will be deploying across 20 to 22 managers and then there's some capital in that fund that's reserved to do direct Investments as well we've already made eight commitments to managers so you

know we're we're in that process we will probably have all 20 of those managers wrapped up by q1 of of next year in terms of who those commitments are again philosophically and based on our own experience back in the 2008 2011 time

frame we believe that the preedee Investments that occur over the next 36 to 48 months are going to be incredibly important in terms of being in the outliers that are going to Define this whole Innovation super cycle that we're

in right we kind of look at this is you know there's a lot of close comparisons to whole kind of Market shift that we went through in that what are your LPS looking for you to do in that $ 225

million fund is it just maximizing Alpha is it giving exposure to venture we have an interesting LP mix in so far as we have sophisticated for the most part sophisticated single family offices who have experience in Venture many of them

are from Silicon Valley and you know their origin of their wealth is technology and so they understand some of these basic principles that we're talking about right now the the basic concept of there's no better way to access outlier type companies than

having an army of Specialists who focus in certain areas like AI or defense Tech or deep Tech who can uncover and find those companies more effectively than you know a couple of Junior people running around town I'd love to say that

we invented this methodology we did not invent it there's been a handful of large families here in Silicon Valley who have been doing this in a kind of manual fashion for 15 plus years but what we've done is we've kind of

structurally formalized it and added some heft where we're looking at a huge amount of these small emerging measure funds we're rolling Out programs like Capital extension we're creating Community amongst these guys and helping them raise their funds by bringing

another LPS will you do a fund manager let's say they raise a $5 million fund and they're still running their company we haven't done that yet but we would certainly be open to it and by the way our smallest fund investment is a five

we never anticipated that there would be a $5 million fund out there and so we would certainly consider it we haven't done it yet but I think you have to be open to those kinds of things I mean

institutional investors have problems with a lot of the concepts in the emerging manager space this notion of being able to look at six to eight years of track record and being able to dig through there I mean you probably know

this but when we meet new funds and new managers fund one you know we off oftentimes get like a random set of spreadsheets you know here are my past Investments and I did this one as an angel and this one as an SPV and it's

across four different platforms and you know scribbled in a spreadsheet so that kind of you know fluidity doesn't go very far with institutional folks I I'll tell you one other interesting data point as well we recently met with an

Institutional LP here in Silicon Valley who manages about $40 billion and they said yeah we in the last three years we started to see all these great numbers about emerging managers our LPS said hey we got to get involved in that and we

need to invest in that keep in mind they manag $40 billion and so they went and they decided to invest in six small like 30 to $40 million funds what they found really quickly was that the administrative overhead dealing in

capital calls and reports and other kind of administrative minutia basically swamped their team of 15 people who by the way had billion dooll positions in other Investments but these six small fund Investments completely flooded them you know with activity that

they had to do just to Monitor and take care of those Investments so this is just to speak to some of the structural challenges that are present with institutional folks investing in this part of the market Michael I want to

apologize I got so excited about Capital extension program that I didn't even ask about your bio tell me about those startups and tell me about what lessons you bring to being a fund manager going backways I co-founded six different

software companies over about a 28 year period since 1994 focused on the digital media space I think the companies that people would know is back in 1997 I co-founded a company called Sonique that was one of the first companies that let

people listen to MP3 files on their computer when we were back in our 20s we sold that to a company called lios co-founded a company in 2002 called goish which was one of the early online video platforms that company grew very

very very quickly pre- YouTube we took it public in 2006 more recently started a video company called tout in 2009 that was a kind of distributed online video platform back in 99 started a company called music Bank it was one of the

first legal subscription services to music in partnership with the music industry so spent a lot of time building companies as an entrepreneur you know out of the six companies that I co-founded thankfully three were acquired one way to public had two that

blew up on the tarmac before they could take flights so you know having been the kind of absolute trench level engagement of how to build Tech businesses that's been helpful as an investor how many Angel Investments did you make before

you started deploying other people's capital I made just over 60 personal investments before actually managing capital for others back in 2008 after being the CEO of a publicly trade company for a couple years that we one of my companies would public decided

that I was not going to start another software company I was going to create an accelerator in San Francisco and just invite cool entrepreneurs to come in and build their companies in that accelerator that was called kick laabs

in 2008 which was awesome and we had some great companies who came through there probably the best known as wish that went on to do quite well in the e-commerce space quite a bit of involvement and especially you know back

when there weren't a lot of tools and Technologies to help you do this angelist was like transformative who also used to hang out in my incubator back when they were an email newsletter you know now we've got sidecar we've got

angelist we've got all these great techn techologies and tools to make that whole process work smoother and easier by popular demand the 10x Capital podcast has officially launched our newsletter powered by Cara Labs a fullservice Content marketing firm that's partnering

with us on the newsletter in our Weekly Newsletter we will keep you updated on all things emerging managers and limited partners including industry trends that are critical to know as an LP VC or founder to subscribe to our totally free

newsletter please visit 10xc Capital podcast.com again and that's 10x Capital podcast.com we thank you for your support angelist carda sidecar has created the rails for this kind of decentralization of venture but you're providing Capital to empower this which

has been missing for many years the feedback we got last week when this announcement went out is people are saying hey you've created the opportunity fund for Syndicate leads and for emerging manager funds out there that has definitely stuck and and it is

and that's what we've created we believe that this part of the market this often overlooked and undervalued part of the market which is emerging managers could actually represent a far more influential and and far more powerful part of a longer life cycle of returns

in these companies but you know up until this point they just participate at preed and seed and that's the end of their their participation we don't think it has to be that way there's certainly a very strong need for this product what

would you like our audience to know about you about mdsv Capital anything else you'd like to discuss we're currently right now looking at had small funds you know emerging manager funds across all categories all verticals and themes and so I would welcome any and

all fund managers to send their information to us we very aggressively look at fund ones so we don't have any issue with a a first-time fund and then you know I would say secondarily to the community of Syndicate leads and

emerging managers that are out there the capital extension program is you know cranking away we already had a big first week before you reach out to Michael please please take a look at this criteria in ter terms of stage Revenue

growth and Michael I I really enjoy this conversation I really appreciate you jumping uh on the podcast look forward to meeting in paloalto or New York City very soon and thanks for jumping on hey thanks David appreciate it