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Limited partners, most of whom are invested in multiple funds, have increasingly balked at the practice, arguing that it increases their exposure to investments and reduces any claims to uniqueness on the firms' parts.
To provide a recent example, Vintage Investment Partners, an LP in multiple funds and founded by Alan Feld, has impressively made some 200 customer introductions this year.
"Limited partners are in it for success of partners as well as the firm, and they want to make a bet on partners who will be involved in multiple funds".
The company is the brainchild of Howie Schwartz, the co-founder of OfferMobi, and an active investor in multiple funds (BHV, ff Venture Capital, Metamorphic) through which he has made other investments in startups like UpNext, Klout, 500px, GameSalad, and a lot of East Coat tech startups.
Incidentally, Human Demand CEO Howie Schwartz, the co-founder of OfferMobi, and an active investor in multiple funds (BHV, ff Venture Capital, Metamorphic), is also involved in ARC Angel, but insists he had to pitch the team like any other startup would, then had to leave the room when they made their decision.
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It will also draw on conversations with investors and founders who have been directly involved in multiple funding rounds, acquisitions and exits, all of whom agreed to be as candid as possible for the purpose of this article and on the strict condition of anonymity.
Such differences help explain why some wealthy investors prefer funds of funds, vehicles that invest in multiple hedge funds, usually with different strategies.
Advantages of variable annuities include the ability to diversify your annuity funds in multiple mutual fund like accounts that will offer you growth in your investment while awaiting retirement.
"The landscape has evolved into the global brand V.C.'s that have multiple funds in multiple countries, and then the specialist boutique firms," he said.
Sorting through multiple funds in multiple asset classes can be daunting and confusing.
Ventech has also raised multiple funds in China.
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