Q&A with Andrew Romans of 7BC Venture Capital
7BC Venture Capital is actively raising capital for Fund III on the back of top fund performance. Our first fund has a MOIC of 3.98x, IRR 33.4% and expects to return a minimum 7x cash on cash return. Fund II MOIC of 4.35x, IRR 60.39% and expects a 12x to 15x cash on cash return. Fund III is already up 1.2x and newest investors still get in at cost. We de-risk VC by 1) diversify 30% of our fund into 25 different companies to neutralize singular startup risk, 2) double down investing 70% of the fund into our top performers from Fund I, Fund II and Fund III, 3) our fund plans to sell 5% to 20% of our position in single startups when they reach very high valuations but are still private. We also allow our LPs to invest in our SPVs funding later stage growth rounds of our portfolio companies and buying small slices of our fund positions providing early liquidity to our LPs that choose early cash liquidity.
Join us for a private Family Office Insights Webinar featuring Andrew Romans, a top 10% and 20% performing venture capitalist, 3x author on VC and blockchain, university professor and General Partner of 7BC Venture Capital. Andrew’s VC funds have a track record of 7x and 12x cash-on-cash returns and 60%+ IRR putting his fund performance in the top 10% of the VC asset class benchmarks. Learn about 7BC’s strategy to return LP capital faster while giving LPs access to later stage SPVs. Learn about their unique model to allow LPs to participate in their LP-in-Residence Program, join the 7BC team for shadow weeks and in-person events around the US as they meet startups and other VCs. Some LPs may take board seats on behalf of the fund and play an active role in the VC process making a powerful network of LPs and accomplished operators supporting the fund.
October 5, 2022 at 2:15pm-3:15pm EST
RSVP & Confirmation Required
Family Office Insights is a voluntary, “opt-in” collaborative peer-to-peer community of single family offices, qualified investors and institutional investors. Join the community here www.familyofficeinsights.com
What is your track record with your previous VC funds?
We have always consistently been in the top quartile and sometimes top 10% of VC performance with 7-15x cash on cash returns, but now building in more flexibility to allow any of our LPs to take early liquidity by selling a small portion of the fund position in single portfolio companies to our own SPVs where a subset of our LPs chose to invest more capital in growth stages of some of our portfolio companies. Our first fund has a MOIC of 3.98x, IRR 33.4% and expects to return a minimum 7x cash on cash return. Fund II MOIC of 4.32x, IRR 60.39% and expects a 12x to 15x cash on cash return. Fund III is already up 1.2x and newest investors still get in at cost.
What makes 7BC Venture Capital different from other VC funds?
1) Financial returns in the top 10% and 20% of the asset class, 2) unique program offering early liquidity or access to growth stage investments on a deal-by-deal basis, 3) membership in an active LP community with direct contact with portfolio companies and other LPs, 4) international LP and corporate network coupled with strong domestic US network covering many major tech corporate titans, 5) portfolio is already taking shape with 12 completed investments and where new LP investors get in at cost and are already up in value.
Talk about your portfolio construction and how you de-risk the asset class.
We view our funds as low risk / high reward. 1) Diversify 30% of our fund into 25 different companies to neutralize singular startup risk, 2) double down investing 70% of the fund into our top performers from Fund I, Fund II and Fund III, 3) our fund plans to sell 5% to 20% of our position in single startups when they reach very high valuations but are still private.
Andrew Romans of 7BC Venture Capital
Andrew Romans is a successful, consistently top quartile performing VC, VC-backed entrepreneur and 3x author, university professor, former tech VC and M&A investment banker, CEO and General Partner of 7BC Venture Capital and previously the founder and General Partner of Rubicon Venture Capital. He is the author of THE ENTREPRENEURIAL BIBLE TO VENTURE CAPITAL: Inside Secrets from the Leaders in the Startup Game, Masters of Corporate Venture Capital and Masters of Blockchain, which have been translated into Chinese, Japanese, Italian and Russian by major publishers. He is also the host of podcast Fireside with a VC (audio – video). Romans also advises large corporations and governments on policies about Venture Capital and Corporate Venture Capital (CVC). Romans raised over $48m for tech startups he founded by the age of 28. Romans founded numerous startups and raised hundreds of millions of dollars in VC funding and led startups to exits. Romans is a Distinguished Professor of the Practice of Entrepreneurship & Venture Capital at Chapman University. In addition to teaching a class on VC & entrepreneurship at Chapman University one of California’s oldest universities, he has lectured on VC at Stanford, Harvard, UC Berkeley, Santa Clara University, UC San Diego, Georgetown University, London Business School, Imperial College London, University of Bologna, Moscow State University, Tsinghua University Beijing & Shanghai University. He is also a frequent guest speaker on MSNBC, CNBC, and ABC.
Contact Andrew: firstname.lastname@example.org