A short excerpt from a Precursor Ventures video arguing that selling a generalist venture fund to limited partners is harder than selling a specialist fund. The speaker explains that specialists are easier to market because they can point to domain expertise, advisor networks, and clearer memos that justify allocation, while generalists face a tougher sales narrative.
I think a lot about the other problem you have when you start a fund is you have to market that fund to limited partners. And as someone who's run a Generalist Fund for 10 plus years, it is a lot harder to go into a room and say, you should pick me as a generalist because I am good at this job versus I am a specialist who has specialized knowledge about a market or an industry that isn't well understood. Here are all my advisors and great CEOs that I know in these spaces, the advisory council and all the things. And I think that's. I always ask myself, what goes in the memo? Eventually the person you're sitting across the table from is going to have to write up, why do I want to give money to this person? And I think the specialist memos are easier to write.
