Venture capital firms that are well-known and that have consistently delivered above-market performance typically attract high investor demand. In Peakview’s experience this often means that when the firms raise new funds, the funds are often quickly subscribed by the VC’s previous investors, leaving little opportunity for new investors to participate. This presents challenges for asset managers seeking to invest in venture capital.
Peakview Capital entered the market from a vantage point very different from most asset managers, having been founded by professionals with long-term venture capital investment backgrounds themselves. Peakview’s investment experience, market knowledge, and networks of personal and business relationships are all grounded in technology venture capital. As such, Peakview’s founding partner has personal relationships with senior partners of many of the more notable VC firms going back more than 20 years, from Stanford’s Graduate School of Business, years as Chairman of the social organization Young Venture Capitalists Association, years of co- investing with other VCs and serving on boards of directors together, as well as many VC social events and other sources of connection. These strong personal relationships allow for smooth entrée into discussions with venture capital firms with respect to potential investments. The VCs tend to appreciate Peakview’s background as venture capitalists themselves as opposed to general asset managers; VCs believe that Peakview “speaks their language” and understands how to quickly assess a potential investment, and be a good partner after investment.
Peakview seeks to invest in the funds of VC firms that, in Peakview’s judgment, possess the industry competitiveness, investment judgment, and internal management best position them to identify, invest in, and accelerate the growth of the next generation of market-defining technology companies. In addition to the attributes of the VC firms, Peakview carefully evaluates the specific parameters of individual funds to help predict performance.
Peakview’s deal sourcing is based on informed insight about fast-growing companies, its own industry research and company analysis, and preferred access to companies through Peakview’s VC relationships.
Informed insight is an important part of the process. Peakview expects to have visibility into the underlying portfolio companies of the Portfolio Funds through regular reporting and meetings as well as through personal interactions with individual GPs. Peakview carefully monitors VCs’ underlying portfolio companies and seeks to identify companies with breakout performance early in their development. Typically, these companies will have reached a growth inflection point, will be leading new or emerging segments or will have the potential to transform existing industries, and are poised to produce long-term growth with outsized investor returns.