For Family Offices new to being LPs in VC, they should realize that a strong focus should be on underwriting the GPs (general partners).

1 - Family Offices shouldn’t just look at quantifiable data such as fund size, they should scrutinize the GPs’ core driver. The most enduring GPs are motivated by an inherent purpose, ie a will to win rooted in a love for innovation, viewing wealth as a by-product of VC. S/MFOs must be wary of poor stated purposes, such as answers like ‘all my friends say I should start a fund because my dealflow is too cool’.

2 - Diligencing the GPs’ character must be balanced, between verbal inquiry (”tell me”) and observation (”show me”). It is crucial to look beyond the pitch that has been refined after 10s of prospective pitches.

3 - S/MFOs, when considering an LP commitment, should collect many perspectives beyond the GPs’ own narrative. Talking to people the GP interacted with during these times is often very telling about how they reached their decision to start a VC firm and a fund.

4 - Family Offices should analyze the GPs’ personal history and pay special attention to transition periods following major accomplishments, such as a prior exit as a founder.

5 - Observing how they treat people in service environments can reveal how they value themselves in society. It may sound naive but understanding how a GP treats others often suggests what a business partnership will be like, and is, from the S/MFO, a testament that they are thinking “relationship from first principles”.

This is not an exhaustive list of course. This list particularly applies to diligencing new/emerging GPs in Venture Capital.

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Erscheinungs­datum: 3.12.2025, 10:18:00