Call to action: Apply to Oper8r!
We’re recruiting for the next Oper8r cohort + a snapshot analysis of current applications
Oper8r is an 8-week intensive paid course with a dedicated community of VCs and over 150 Tier 1 LPs built to educate and empower the next generation of great fund managers. Backed by Amazon, Carta, FRB, Frank Rimerman, and Docsend, the core curriculum provides exposure to LPs for insights, authentic feedback, and relationship building along with best practices from expert service providers to build the foundation of your firm.
We’re seeking applications to Oper8r Cohort II (apply here!)
Application due: March 10, 2021
Next cohort launch: End of March / early April
If you miss the deadline, your application will be considered for Oper8r Cohort III
At Oper8r, we believe that emerging VCs outperform.
To give these emerging VCs an edge, we’ve created a “YC for funds” program to help VCs on all facets of venture firm building, including:
Understanding how to build a VC firm, plan for subsequent funds
Fundraising strategy, including understanding the fundraising process
Operational fund management
And much more, including team building, parsing the LP world, and learning the legal and ethical responsibilities of a professional fund manager
In 2020, we launched Cohort I with 18 high potential emerging investors, who participated in 18 core curriculum modules which was highly successful for all involved. We’ve iterated to focus even more on fundraising go-to-market, education, and community. We are thrilled to be launching our next cohort!
Oper8r brings more transparency to early-stage VC
As a first step, we’re aggregating and sharing some of the application data. There is so much untapped potential. Our goal with sharing is to help VCs and LPs understand the size and scope of the early-stage VC market.
A note on data: The analysis below has selection bias given these are applications to Oper8r, but given the larger sample size (over 350 applications so far), it may give a representative view on what a portion of early-stage VC looks like today:
Most emerging managers are focused on pre-seed and seed-stage investments
Three-quarters of applicants are from the U.S., though there seems to be a large interest to learn about building a VC firm from international applicants
Many early-stage VCs claim to lead deals, or expect to lead deals in their next fund
Most emerging VCs offer co-invest to their LPs
Two-thirds of emerging VCs are solo or 2-GP teams
The gender gap of emerging managers is improving, with over a third of emerging funds being women-led compared to 5.6% of existing funds
Black and Hispanic/Latinx-led funds is just over 21%, while for the industry they represent only 7% of all VC investors (not just those in senior management positions)
Overall, the diversity of emerging managers is exciting, with more than 60% identifying as an underrepresented minority
Based on Oper8r’s framework for defining VC backgrounds, most founding partners of emerging funds are operator angels or trained VCs (Wild Card is defined as someone who hasn’t had an operational role at a VC-backed technology company, or worked at a traditional VC firm)
Almost one-fifth of new VCs are structured as rolling funds (Something Else is defined as a VC fund that may have accelerator or incubator component, or structurally differ from a traditional VC or rolling fund, for example, an evergreen fund)
About three-fifths of new fund managers declare a specialized investment focus (Something Else is defined as a catch-all bucket, and includes VCs self-identifying as generalists and also those focused on diverse founders)