You can’t fire a venture fund manager.
Once you commit, your money is locked up for a decade or more. No sell button. No refund. Just a partner you picked before you knew how they’d act when things went wrong.
So how do the pros pick?
Chris Schelling of Caprock has allocated to venture funds for over two decades. When he evaluates a manager, he shares a meal with them. Does the prospect yell at the waiter? Is he curious, generous, self-aware?
His reasoning: if something feels off at dinner, it will feel a lot worse three years into a fund, when a portfolio company is in trouble.
That story opens Chapter 13 of my new book. Read the excerpt: https://teamignite.vc/blog/the-waiter-test-what-a-veteran-allocator-learns-over-dinner
LP: The Insider’s Guide to Investing in Venture Capital Funds comes out November 4. thelpbook.com