Graham Pingree is a Partner at Cendana Capital, a fund of funds firm that invests in small venture funds investing at pre-seed and seed. We talked about why Cendana is focused on small funds, why it has a concentrated strategy, what the firm looks for in emerging managers, how to think about reserves and recycling, and why big venture firms are surprisingly hard to kill.
The episode is now available on Apple Podcasts, Spotify, Amazon, and YouTube Music.
Chapters
00:00 Introduction to Early Stage Investing
01:12 Understanding Fund of Funds and Emerging Managers
03:50 Navigating Pre-Seed and Seed Investments
08:50 Strategies for Early Stage Venture Capital
12:07 The Importance of Portfolio Construction
15:36 Challenges for Emerging Managers
18:38 Reserve Strategies and Recycling Capital
22:09 Current Landscape for Emerging Managers
25:51 The Future of Venture Capital Firms
30:02 Connecting with Emerging Managers
Takeaways: Small Funds and Emerging Managers
Cendana Capital focuses on small funds deploying capital at pre-seed and seed stages.
The fund of funds landscape offers various options for LPs, from diversified to targeted exposures.
Emerging managers are increasingly important in the venture capital ecosystem.
Pre-seed and seed definitions are blurring, with opportunities in both stages.
Smaller funds can provide more flexibility and optionality in investments.
Portfolio construction is critical for achieving excellent investment performance.
Emerging managers face challenges in transitioning from angel investing to institutional fund management.
Reserve strategies can be adjusted to enhance fund performance.
Recycling capital is essential to mitigate fee drag and enhance returns.
The venture capital landscape is evolving, with established funds remaining resilient despite market challenges.
The content here is for informational purposes only and should not be construed as investment, legal or tax advice. The opinions expressed by guests are their own and do not reflect the views of Seaplane Ventures. Our host, guests and clients may hold investments discussed in this podcast. Please invest responsibly.