Why I invest in venture funds

The author, who has quietly backed 30 venture funds over eight years, explains that they invest mainly to learn, gain deal flow, and support fellow investors, with making money as the lowest priority given their small check sizes. They say they focus on small funds under $30M investing at pre-seed and seed, noting that small funds have historically delivered better returns on average and that a $300K check can be a multiple-fund returner for them. They also back highly connected generalists for deal flow and specialists such as those in biotech, deep tech, and climate tech for diversification, and they look for investors who take the responsibility of managing other people's money seriously. They are an LP in funds including Earl Grey, Factorial, HF0, and Founders Inc.