Identifying promising fund managers who can deliver exceptional returns is a challenge. Allocator One has cracked the code to this investment dilemma: first-time fund managers.
Why First-Time Fund Managers?
First-time fund managers are untapped reservoirs of innovation and success, poised to deliver extraordinary returns. Their VC funds often demonstrate superior market performance with 3X+ higher returns over a 10 year time horizon for <$50M funds compared to the top performers of all other fund sizes.
Young funds offer an early bird advantage, yielding 380% higher multiples on invested capital than established managers. They also excel at trendsetting, dedicating 6.1% of their investments to new technologies compared to 1.6% for older funds. Moreover, new fund managers often bring entrepreneurial experience, with 72% having startup experience and a 40% higher likelihood of founding a company compared to established VCs. Despite the proven outperformance of their funds, first-time fund managers typically struggle to get their funds off the ground.
Allocator One | Batch One (Winter 2023)