How FirstLook Picks the Top 10% of Venture Funds | E76

Co-Investment

FirstLook Partners employs a hybrid multi-strategy approach, investing a significant portion of their capital into emerging venture capital funds and making direct co-investments in promising companies. Josh Porter highlights the importance of early involvement with managers and companies to build conviction and add value through introductions and support 1. This proactive strategy allows them to make informed decisions quickly when opportunities arise.

It's a much more, I guess, proactive process, rather than being reactionary and scrambling when a deal comes together.

--- Josh Porter

They avoid high fees associated with oversubscribed deals, preferring direct cap table access to maintain favorable terms for their LPs 2.

   

Fund Selection

In selecting venture capital funds, FirstLook prioritizes managers with a unique edge in sourcing and a proven ability to return capital. Josh Porter explains that they favor former founders and operators with investing experience, looking for those who demonstrate significant personal investment and commitment 3. Trust and honesty are crucial, with extensive reference checks ensuring alignment with FirstLook's values.

We want to see an edge in sourcing. We want to see a history of an ability to return capital to investors.

--- Josh Porter

Their diligence process is thorough, involving multiple meetings and a deep dive into past investments to understand the manager's style and decision-making 4.