When in 2010, former VC Michael Kim set out to raise a fund that he would invest in a spate of micro VC managers, the investors to which he turned didn’t get it. Why pay Kim and his firm, Cendana Capital, a management fee on top of the management fees that the VC managers themselves charge?
Fast forward to today, and Kim has apparently proven to his backers that he’s worth the extra cost. Three years after raising $260 million across a handful of vehicles whose capital he plugged into up-and-coming venture firms, Kim is now revealing a fresh $278 million in capital commitments, including $218 million for Cendana’s fourth flagship fund, and $60 million that it will be managing expressly for the University of Texas endowment.
We talked with Kim last week about how he plans to invest the money, which differs slightly from how he has invested in the past.
Rather than stick solely with U.S.-based seed-stage managers who are raising vehicles of $100 million or less, he will split Cendana into three focus areas. One of these will remain seed-stage managers. A smaller area of focus — but one of growing importance, he said — is pre-seed …read more
Source: Tech Crunch