Are spinouts from established venture firms attractive investments for LPs?

Harry Stebbings · Nov 21, 2022

A better endowment strategy is to anchor a handful of star investors leaving big franchises — e.g. $30M of a $100M fund — and put them in business

There are rock stars inside large franchises sitting on carry that has been halved and stuck in politically difficult partnerships, so they are winnable

47:44 Actively anchor star investors leaving big franchises as a deliberate lp strategy

Beezer Clarkson · Oct 18, 2023

Institutional fund ones — typically spinouts — will have a much easier time raising fund two than angel-originated fund ones

Experienced venture LPs know two to three years of work shows very little data, so barring a strategy change or team breakdown they will re-up and wait until fund three to judge

15:52 Institutional spinout fund ones raise fund twos more easily than angel originated ones

Harry Stebbings · Jun 16, 2025

LPs reliably fund spinouts from brand-name firms on pedigree alone, and a media company is a legitimate way for a fund to differentiate

He was just with allocators who said they love spinouts from firms like Accel and will fund them; media gives access to great people and references to the next great thing

20:39 Lps reliably fund spinouts from brand name firms on pedigree alone

Harry Stebbings · Aug 4, 2025

Spinouts from established venture firms are drastically overrated

29:24 Spinouts are drastically overrated

Miles Dieffenbach · Aug 4, 2025 · hedged

Spinouts are generally unattractive to back, with the possible exception of clean spinouts from tier-one firms

29:31 Spinouts are generally unattractive except clean tier one spinouts