Disrupting VC Benchmarking and Closing The LP-GP Information Gap with Eric Woo and Spencer Tyson

Village Global Podcast

Eric Woo (@ericjwoo), co-founder and CEO of Revere, and Spencer Tyson (@SpencerGTyson), Head of Investment Ratings at Revere, join Olga Serhiyevich (@olgaserhi), Head of Investor Relations at Village Global. Revere has pioneered the world’s first rating system for venture capital funds.
Takeaways:
- Venture has changed a lot over the last couple decades and continues to evolve quickly. In the last decade emerging managers has become its own sub-category, and venture as an asset class has bifurcated into specialist and generalist investors.
- Revere has found through their extensive data analysis that funds that are diverse outperform, funds with a female GP outperform, solo GPs outperform, and career operators outperform those with a fund management background.
- Fund benchmarking requires more scrutiny. The same data can be presented in very different ways depending on the use case. For this reason, Revere uses a standardized rating system to equip allocators with the tools to evaluate funds.
- At the median, first funds do reasonably well, second funds do worse than the first, but third funds shoot up in terms of performance.
- Revere looks at data, process, and repeatability when they are evaluating managers. They consider sourcing, qualifying deals, winning deals, value add, as well as whether firms stick to their stated portfolio construction.
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