Dec. 23, 2021

Deep Dive: Strategy for VC fund growth and portfolio development with Brian Ma

Deep Dive: Strategy for VC fund growth and portfolio development with Brian Ma

In the second episode of our new segment, Deep Dive, I do a detailed discussion with Brian Ma about running a VC fund, something founders are rarely acquainted with. Brian is the founder and managing partner at Iterative Capital, a seed-stage fund focusing on Southeast Asia. He is an entrepreneur turned VC with extensive first-hand experience at investing and fundraising in both the aforementioned roles, lending him a rich stock of knowledge about the topic at hand. We talk about strategies VCs use to acquire funds, the details of their communication process with LPs, and some ways to ascertain an optimal portfolio. Brian also goes on to explain his understanding of the directly proportional relationship between graduation rate and returns, the significance of TVPI, and the benefits of recycling money.


 In this episode, you will learn:

  • The distinction between responsibilities handled by fund managers, LPs, and founders
  • Why is fundraising harder for VCs than it is for founders?
  • How can you set your VC fund apart?
  • A comparison between the portfolios of LPs and VCs
  • Parallels between the roles and responsibilities of emerging managers and founders
  • What are the implications of fund size on fund strategy?
  • Why is it better to keep your portfolio concentrated?
  • What is the relationship between TVPI, graduation rate, and returns?
  • What is the process of recycling money? Why is it important?

About

Brian Ma is a partner at Iterative Capital and 3x founder turned investor. Brian was previously founder and CEO of Divvy Homes ($2B valuation), Weave (YC S14, acquired), and Decide (Series C company, acquired by eBay). In non-existent spare time, Brian enjoys dog parks with his german shepherd mix, rides on his motorcycle, and aping into interesting crypto projects.

Iterative is a YC style accelerator focused exclusively on Southeast Asia by the founders of Divvy (a16z, GIC), Weave (YCS14), and Decide (acquired by eBay) who have collectively raised $100M+ in VC. Iterative invests US $150K into early stage startups twice a year then works with them intensely for 3 months culminating in a Demo Day. Founded in 2021, Iterative's mission is to increase the GDP per capita of Southeast Asia through entrepreneurship.

Brian Ma Profile Photo

Brian Ma

Partner at Iterative Capital

Brian is a partner at Iterative Capital and 3x founder turned investor. Brian was previously founder and ceo of Divvy Homes ($2B valuation), Weave (YC S14, acquired), and Decide (Series C company, acquired by Ebay). In non-existent spare time, Brian enjoys dog parks with his german shepherd mix, rides on his motorcycle, and aping into interesting crypto projects.

Iterative is a YC style accelerator focused exclusively on Southeast Asia by the founders of Divvy (a16z, GIC), Weave (YCS14), and Decide (acquired by eBay) who have collectively raised $100M+ in VC. Iterative invests US $150K into early stage startups twice a year then works with them intensely for 3 months culminating in a Demo Day. Founded in 2021, Iterative's mission is to increase the GDP per capita of Southeast Asia through entrepreneurship.