Venture Investor’s Playbook: Part 6

How to Succeed as a Portfolio Manager

Chip Hazard; General Partner, Flybridge

Optimal Portfolio Size

One side argues for a large number of holdings in a given portfolio. This comes from a belief that there is a relatively high degree of randomness to actual returns, and therefore it is better to make the best decisions you can but with more shots on goal to account for the unpredictability.

Making Follow-on Investments

The different poles are never to make follow-on investments or to always do pro-rata in any company that raises outside capital.

The bottom line: to be a successful VC portfolio manager, you need a diversified portfolio and to lean into your winners strategically.

While there are different approaches, my take is to maintain a decent-size portfolio and to make follow-on investments in the most promising companies you’ve already backed.

Seed-stage VC working with entrepreneurs to leverage the power of community.

Seed-stage VC working with entrepreneurs to leverage the power of community.