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This is my personal & professional blog.  It's a place for me to think out loud and learn. I'll sometimes talk about things I don't understand as a way to begin to understand them. I'll often be wrong, short sighted, and unclear. When you see this happening, please point it out!

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Wednesday
Jul302008

Not doing a Seed Fund

I was going to do a Seed Fund.  Raise some money and turn it into more money.


Primarily because I think it would be a helluva a lot of fun.  I love meeting people with more conviction, charisma, brains, and luck than I can manage to muster.  Identifying and working with such people seems like a dream.


However, I’m not doing this.  The economics, according to my math, aren’t that good:

1.  Start with $5M of other people’s money.


2.  Invest it in early stage startups.  Do surprisingly well.  Turn that $5M into $25M in 5 years.  Take that Kleiner!


3.  Distribute 80% back to investors.  You’re personally left with $4M.

If that’s bad math, do let me know!

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