Cendana Capital, which has been backing seed funds for a decade, has $278 million more to invest – TipsClear
When in 2010, former VC Michael Kim determined to raise a fund that he would invest in an investment of micro VC managers, the investors he turned to could not be found. Why does Kim and his firm, Sendana Capital, pay a management fee on top of the management fees that VC managers themselves charge?
Fast forward to today, and Kim has clearly proved to her backers that she is worth the extra cost. After raising $ 260 million in a handful of vehicles whose capital he invested in up-and-coming venture companies, Kim is now disclosing $ 278 million in capital commitments, including $ 218 million for his fourth major fund. $ 60 million includes Sendana. The University of Texas expressly manages for settlement.
We spoke with Kim last week about how he plans to invest money, which is a little different from how he has invested in the past. Instead of just sticking with U.S.-based seed-stage managers who are raising vehicles worth $ 100 million or less, they will divide Kendana into three focus areas. One of these will be the seed-stage manager. A small area of focus – but one of increasing importance, he said – is ex-seed managers who are managing $ 50 million or less and providing more or less finance to ideas.
A third area of increasing interest is in international managers. In fact, Kim says that Cendana has already done so in Australia (Blackbird Ventures), China (Cherubic Ventures, a cross-border investor that also focuses on the US), Israel (entry capital) and India (Saama) Only small enterprises are supported. Capital), among others.
In total, Cendana is now managing approximately $ 1.2 billion. In return, investors are held 1% of each Cendana-run fund as a management fee and 10% of its profits, a 2.5% management fee, and 20% on the “interest” that its fund managers collect.
“It’s very clear to be more transparent about this,” Kim said, adding that it’s a stacked fee that tops the fund managers chart. So Cendana LPs are paying 3.5% and 30%. And you might think that sounds great. But a number of our LPs are either not staffed to address this market or are too large like the University of Texas to actually write small checks to these seed funds. And we offer them a very interesting value proposition.
Others, big fund managers Kim says, “Many of these funds are fund-raising assets. They are not charging interest. They are in it for management fees. They have glowing offices around the world, they have hundreds of people working, they are raising billion-dollar-plus-type funds, and they are putting 30 to 50 names in each, so in a way they index Money becomes.[but[Idonotthinkthattheindustryisreallyanassetclass[But[IdonconsideringthinkventureisreallyanassetclassUnlikean[परंतु[मुझेनहींलगताकिउद्यमवास्तवमेंएकपरिसंपत्तिवर्गहै।एककेविपरीत[But[Idon’tthinkventureisreallyanassetclassUnlikeanThe ETF that focuses on the S&P 500, venture capital is where a handful of fund managers capture most of the alpha. Our difference is that we are building a very focused portfolio.
In particular, Cendana typically places in 12 funds, as well as placing $ 1 million in bets on some of the more newly acquired managers that it will fund further if they prove their research.
This has been supported by some managers, who have pushed Sendana from an asset point of view. It invests in funds that are $ 100 million or less. But over time, it has supported: 11.2 Capital, Accelerator Ventures, Angular Ventures, Bowery Capital, Collaborative Fund, Foreigner Ventures, Founder Collective, Freestyle Capital, IA Ventures, L2 Ventures, Lerer Hippo, MHS Capital, Montage Ventures, Moxxi Ventures, Neo, Next View Ventures, Silicon Valley Data Data Capital, Spider Capital, Susa Ventures, Unsark VC (when it was still Softtech VC), Wave Capital and XYZ Ventures.
For its pre-seed fund managers, these include firms Better Tomorrow Ventures, Bolt VC, Engineering Capital, K9 Ventures, Mooker Capital, Notation Capital, PivotNorth Capital, Rapsdi Venture Partners, Root Ventures and Wonder Ventures.
As for his returns, Kim says that Cendana’s first fund, a $ 28.5 million vehicle, is “marked north of 3x” and “that everything is pure.” Kim also notes that Kendana’s extensive portfolio consists of 38 so-called units, and more than 160 companies with prices of more than $ 100 million.