VC Portfolio Construction and Scenario Planning - Confluence.VC Podcast

A good portfolio construction strategy is an evergreen asset you can keep using to manage investment decisions going forward.
Key Takeaways:
  • Funds that are shutting down right now are going to miss out on some of the best opportunities. Valuations are down, founders still need capital, and investors that wait on the sidelines are going to miss the upside. Scared money don’t make money.
  • Especially at the pre-seed, revenue shouldn’t be prioritized highly. Product-market fit and having early indicators of traction matter more than immediate revenue.
  • Portfolio construction is a process. You usually have to lay this out in the fundraise.
  • A good portfolio construction strategy is an evergreen asset you can keep using to manage investment decisions going forward. The better you lay this out, the better you can stick to your strategy over the lifecycle of the fund.
  • Your primary goal as a GP is not to create spreadsheets. It’s to get into deals and raise capital from LPs.
  • Most up-and-coming venture services providers are collaborative and are building out products with a focus on integrations. Most of the traditional venture services providers are exclusive and want to build a one-stop shop for VCs. It’s easier to see this on the inside, but it holds true.
  • Australia is one of the fastest-growing venture capital markets in the world. According to Anubhav, they have some of the best internal processes he has seen.
  • Startups need the most help around distribution. If you want to actually be helpful to your portfolio companies, help them get the word out.