What Is Fund Flow?

How does one not from Silicon Valley start own VC fund and get access to quality deal flow?

  • Suppose I'm a VC outside of the US who wants to start investing in high quality Silicon Valley startups. The problem is that it is not easy to get access to them, even if you have money (Yuri Milner story is more an exception). What is the best strategy to get the access to the deal flow? Is it still any room in Silicon Valley for new VC funds?

  • Answer:

    While it is a crowded space, there should be room for one more VC if they have a unique strategy to get into one or more of the top 20 investments of the year. What strategy would you use to achieve this depends on your specific background - if there was a formula then everyone would use the formula and it would no longer be effective. For example, if you bring only capital to the table, you could be an LP in an incubator (hard to get into the best ones though) or you could be a StartFund like follow on fund. There are also other creative strategies you can use like buying the follow on pro rata rights for post Series B rounds from micro VCs.

Anonymous at Quora Visit the source

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Other answers

Partner with someone in SV who has the access but not the capital to make these investments

Ish S. Dugal

There is a persistent seed stage gap everywhere, including in Silicon Valley. If that stage interests you, please feel free to look at 1M/1M. We have deal flow, and work with investors routinely. Link: http://1mby1m.com

Sramana Mitra

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