When investors consider Venture Capital portfolios, the old adage that 1 or 2 companies within each vintage will deliver the majority of returns largely stands true. But in a portfolio of 10 companies, should and could more be done by VCs to expand this apparent success rate? It is all too common to see very little interaction and guidance being given to portfolio companies at some of the larger VC's once they’re invested, largely due to the sheer amount of dry powder they have available to allocate in the event of a string of investments not performing as planned. Furthermore, most VC's tend to only allocate resources, additional capital, and time to portfolio companies that seem to be achieving commercial growth. In our view, for the majority of VC funds, this model arguably is not sustainable, and a fund might miss out on a few winners if they had a proper growth framework in place.
So how are Fuel different?When viewed across the VC spectrum, we believe that our positioning is both unique and unparalleled, for the following reasons:
- We are an early stage Seed investor with significant follow on capabilities.
- Our team and advisory board are full of successfully exited entrepreneurs with real experience of growing and scaling businesses, both within the UK and Internationally (this will be explored further in a future blog).
- We actively roll up our sleeves and get involved with our companies.