Ask HN:How do people invest in VC funds?

2 pointsikrima15y ago3 comments

I've come across lots of articles on how VCs invest in startups, but never came across on how people invest in VC funds. Is it like investing in a hedge fund? What are the mechanics for all of that?

3 comments

cperciva15y ago

how people invest in VC funds

Step 1: Acquire several million dollars.

Step 2: Talk to the VCs who funded your company and ask if they're looking for more limited partners, or if they know any good funds which are.

VC funds are even less liquid than hedge funds. They're not something you can buy into easily unless you have a lot of cash and a lot of connections.

ikrimaOP15y ago

So the investors are just 20-30 high net worth individuals? From an investing point of view, I'd be curious to see the returns and mechanics of VC funds. The highest returns I've ever come across on a hedge fund was 30% ROE over 10 years....until the quant fund blew up with the housing crises

cperciva15y ago

So the investors are just 20-30 high net worth individuals?

More often 20-30 high net worth institutions -- university endowment funds, pension funds, and suchlike -- but I imagine many VCs have a few individual investors too.

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3 comments

cperciva15y ago

how people invest in VC funds

Step 1: Acquire several million dollars.

Step 2: Talk to the VCs who funded your company and ask if they're looking for more limited partners, or if they know any good funds which are.

VC funds are even less liquid than hedge funds. They're not something you can buy into easily unless you have a lot of cash and a lot of connections.

ikrimaOP15y ago

cperciva15y ago

So the investors are just 20-30 high net worth individuals?

More often 20-30 high net worth institutions -- university endowment funds, pension funds, and suchlike -- but I imagine many VCs have a few individual investors too.

j / k navigate · click thread line to collapse