E70: How VC Fund of Funds Work with Alex Edelson

Alex Edelson, Founder of Slipstream Investors, sits down with David Weisburd to discuss the benefits and tradeoffs of investing in venture capital fund of funds. They also touch on Slipstream’s investment thesis, portfolio construction, and due diligence process. (0:00) Episode preview (2:16) Discussion on portfolio diversification (4:41) Benefits & trade-offs in fund to funds strategy versus single fund investing (7:13) Ideal number of funds for diversification in venture capital (8:46) Life cycle of a diligence process when vetting a manager (12:05) Assessing a fund manager (13:05) Importance of founder references (14:09) Essentials in a fund data room (16:17) Value of transparency with GPs (18:25) Gaining access to oversubscribed funds (19:22) Closing remarks