How Specific Or Flexible Is A VC Portfolio?

Pretty flexible. Most venture firms sell a pretty generic private placement memorandum to limited partners. Much more generic than a business plan for a startup. I have seen those plans and sat in on a pitch meeting with a notable limited partner. Many venture firms use a slightly modified plan from other venture firms, with the major difference being the team executing on the investment thesis.

Venture firms use a very broad thesis limited partners can understand, laced with generally accepted technological buzz-words up for liberal interpretation post-funding, allowing venture firms quite a bit of thesis drift.

Not to pick on a single firm, but remember when KPCB launched the Facebook app fund and the iPhone app fund? I know some of their limited partners who bought into this foolery, and how they welcomed a mid-term thesis drift.


The sign of an intelligent nation is its willingness and ability to reinvent itself, upstream. Let’s inspire the world with new rigors of excellence we first and successfully apply to ourselves.

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