While some might say that puts a boutique at a disadvantage, we disagree. Having a pre-existing relationship with quality VC firms is often the only path into their funds. You can’t just walk up with a check and get an LP slot. So, these quality VC funds are capacity constrained. They get their capital from current and previous investors. In fact, most of these VC funds are oversubscribed.
Translation: investors want quality funds, but quality funds don’t necessarily need new investors. That means lots of demand chasing a limited amount of supply. Many investors know that who you invest with, which funds you are in, is key to return generation in VC/PE. It’s simple, but that doesn’t mean it’s easy. One of the keys to success in venture capital investing is getting into quality funds. Therefore, the team at Fairway believes access and alignment can live happily ever after – especially within a boutique framework. Further, we have a structure that ensures our interests are truly aligned with our clients. The demand is often greater than the supply.įairway’s Founding Partners have invested with many of the largest private equity and venture capital firms in the world. The catch-22 is that the quality funds don’t need any more capital. The challenge is not just to get into venture capital, but to get into the right funds within venture. Access is a key factor in generating returns in venture capital.
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