The document outlines the top 8 mistakes that emerging fund managers make when starting a new venture capital fund. The mistakes include: building a fund based on short term trends, having a mismatch between the fund strategy and portfolio companies, misaligning incentives and responsibilities, being overly optimistic in fundraising, partnering with the wrong limited partners, failing to execute the stated strategy, providing inadequate communication to limited partners, and delaying exits when they are warranted. The document provides examples and explanations for each of the top 8 mistakes.

1. LET’S BEGIN!
Top 8 Mistakes
Emerging Fund
Managers Make

2. Edith Yeung
GENERAL PARTNER, Race Capital
Founder of FoundersHK
@edithyeung
2
Edith Yeung is a General Partner at Race Capital - an
early-stage Silicon Valley venture capital fund investing
in all things infrastructure. Edith is the seed investor in
Solana (has been dubbed one of the best venture
investments of all time), Lightning Network, Agora.io,
Placer.ai, RapidAPI, and 60 other amazing startups.
Prior to Race Capital, Edith was a partner at 500
Startups, the world's most active early-stage fund and
incubator which invested in Twilio, Credit Karma, Grab,
and 2000 more companies. Before 500, Edith was the
general manager at Dolphin Browser, a Sequoia
Capital - backed mobile browser with over 150 million
installs worldwide. Edith also worked with many
Fortune 500 companies such as Siebel, AMS, AT&T
Wireless, and Autodesk.
She frequently speaks on venture capital, women in
leadership, China and Silicon Valley technology and
investment landscape. She is also a frequent guest
lecturer at Berkeley and Stanford and commentator on
BBC, CNBC, Wall Street Journal, Bloomberg, SCMP,
Techcrunch, The Information, etc.

3. Source: Techcrunch

4. Source: Bloomberg

5. 5
VC Tom
VC Johnny
VC Amy

6. 6

7. Top 8 Mistakes Emerging Fund Managers Make
1. Build a fund based on short term trends
2. Mismatch between fund strategy
3. Misalignment of incentives and responsibilities
4. Excessive optimism in limited partner (LP) fundraising
5. Partner with wrong LPs
6. Failure to execute stated strategy
7. Inadequate communication with LPs
8. Delayed exits when warranted

8. 8
Trend 1: Build a fund based on short term trends

9. Source: CBInsights

10. Source: CNBC

11. Source: Cointelegraph

12. Source: The Block

13. Source: Harvard

14. Source: Reuter

15. 15
Trend 2: Mismatch between fund strategy

16. 16

17. 17
Meet Amazing Venture Capital
Introducing an amazing $10 million venture fund with a targeted focus on Series D and E stage
investments on a global scale. This fund is designed to identify and support established startups that
have demonstrated substantial market traction and are poised for further expansion and growth.
With a keen eye on late-stage opportunities, the fund seeks to provide crucial capital injections to
companies that have already established their viability and are on the cusp of reaching new heights.
Drawing from a diverse pool of industries and regions, the fund aims to tap into innovative enterprises
with proven business models, capable leadership, and a strong track record of execution.
By investing in Series D and E stages, the fund maximizes its potential to accelerate the scaling
process, driving both the companies and the fund toward mutual success. Backed by a team of
seasoned professionals, the $10 million venture fund is committed to fostering strategic partnerships,
harnessing industry expertise, and leveraging its network to not only provide capital but also offer
valuable insights and guidance. This approach aims to propel companies through their late-stage
challenges and propel them toward achieving significant market share and influence.

18. 18
Meet Amazing Venture Capital
Introducing an amazing $10 million venture fund with a targeted focus on Series D and E stage
investments on a global scale. This fund is designed to identify and support established startups that
have demonstrated substantial market traction and are poised for further expansion and growth.
With a keen eye on late-stage opportunities, the fund seeks to provide crucial capital injections to
companies that have already established their viability and are on the cusp of reaching new heights.
Drawing from a diverse pool of industries and regions, the fund aims to tap into innovative enterprises
with proven business models, capable leadership, and a strong track record of execution.
By investing in Series D and E stages, the fund maximizes its potential to accelerate the scaling
process, driving both the companies and the fund toward mutual success. Backed by a team of
seasoned professionals, the $10 million venture fund is committed to fostering strategic partnerships,
harnessing industry expertise, and leveraging its network to not only provide capital but also offer
valuable insights and guidance. This approach aims to propel companies through their late-stage
challenges and propel them toward achieving significant market share and influence.

19. 19
Meet Humongous Capital
Introducing an ambitious and groundbreaking venture fund with an unprecedented size of $100 billion,
dedicated to early-stage investments. This fund represents an unparalleled commitment to identifying,
nurturing, and catalyzing the next generation of disruptive startups across various industries and
geographies.
With a laser focus on the crucial early stages of a company's development, this fund aims to be a
driving force behind innovation, propelling budding entrepreneurs from concept to market with
transformative investments. By providing substantial resources at a critical juncture, the fund seeks to
empower visionary founders to realize their potential and bring their groundbreaking ideas to life. Led
by a team of experienced investors, industry experts, and thought leaders, the $100 billion venture fund
is poised to redefine the landscape of early-stage investment.
By leveraging its substantial capital pool and extensive network, the fund aspires not only to fuel growth
but also to cultivate ecosystems that foster collaboration, mentorship, and knowledge sharing. This
venture fund envisions itself as a catalyst for innovation, a partner for pioneering minds, and a force
that reshapes industries.

20. 20
Meet Humongous Capital
Introducing an ambitious and groundbreaking venture fund with an unprecedented size of $100 billion,
dedicated to early-stage investments. This fund represents an unparalleled commitment to
identifying, nurturing, and catalyzing the next generation of disruptive startups across various industries
and geographies.
With a laser focus on the crucial early stages of a company's development, this fund aims to be a
driving force behind innovation, propelling budding entrepreneurs from concept to market with
transformative investments. By providing substantial resources at a critical juncture, the fund seeks to
empower visionary founders to realize their potential and bring their groundbreaking ideas to life. Led
by a team of experienced investors, industry experts, and thought leaders, the $100 billion venture fund
is poised to redefine the landscape of early-stage investment.
By leveraging its substantial capital pool and extensive network, the fund aspires not only to fuel growth
but also to cultivate ecosystems that foster collaboration, mentorship, and knowledge sharing. This
venture fund envisions itself as a catalyst for innovation, a partner for pioneering minds, and a force
that reshapes industries.

21. 21
Meet the White Pink FinTech Fund
Introducing a pioneering $50 million venture fund that merges the worlds of innovation, finance, and
untapped potential in North Korea. With a sharp focus on the fintech sector, this fund aims to catalyze
transformative changes by supporting groundbreaking startups and initiatives within the North Korean
market.
The $50 million venture fund is strategically positioned to identify and nurture fintech-driven projects
that align with the unique landscape of North Korea. By infusing capital, expertise, and cutting-edge
technology, the fund seeks to drive financial inclusion, enhance digital infrastructure, and create
opportunities for local entrepreneurs. Led by a team of experts well-versed in both fintech and the
complexities of the North Korean ecosystem, this fund is committed to responsible investment
practices.
Through collaboration, knowledge sharing, and cross-cultural engagement, the fund endeavors to
establish meaningful connections between global fintech innovators and North Korean talent.

22. 22
Meet the White Pink FinTech Fund
Introducing a pioneering $50 million venture fund that merges the worlds of innovation, finance, and
untapped potential in North Korea. With a sharp focus on the fintech sector, this fund aims to catalyze
transformative changes by supporting groundbreaking startups and initiatives within the North Korean
market.
The $50 million venture fund is strategically positioned to identify and nurture fintech-driven projects
that align with the unique landscape of North Korea. By infusing capital, expertise, and cutting-edge
technology, the fund seeks to drive financial inclusion, enhance digital infrastructure, and create
opportunities for local entrepreneurs. Led by a team of experts well-versed in both fintech and the
complexities of the North Korean ecosystem, this fund is committed to responsible investment
practices.
Through collaboration, knowledge sharing, and cross-cultural engagement, the fund endeavors to
establish meaningful connections between global fintech innovators and North Korean talent.

23. 23
Trend 3: Misalignment of incentives & responsibilities

24. 24

25. 25
Source: Pitchbook

26. 26
Source: Pitchbook

27. 27
Trend 4: Excessive Optimism in LP Fundraising

28. 28
Source: Close

29. 29

30. 30

31. 31
Trend 5: Partner with the Wrong LPs

32. 32

33. 33
Trend 6: Failure to execute stated strategy

34. 34

35. 35
Failure to execute stated strategy
• Don’t have enough ownership for each portfolio companies
• Don’t double down on winner
• Don’t have enough number of portfolio companies
• Write too large of a check for just one company
• Invest in geographies not covered by your fund thesis
• Invest in stage not covered by your fund thesis
• Invest in industry not covered by your fund thesis

36. 36
Trend 7: Inadequate communication with LPs

37. 37

38. 38
Source: Signature Block

39. 39

40. 40
Trend 8: Delayed exits when warranted

41. 41

42. 42

43. 43
Source: Crunchbase News

44. Top 8 Mistakes Emerging Fund Managers Make
1. Build a fund based on short term trends
2. Mismatch between fund strategy
3. Misalignment of incentives and responsibilities
4. Excessive optimism in limited partner (LP) fundraising
5. Partner with wrong LPs
6. Failure to execute stated strategy
7. Inadequate communication with LPs
8. Delayed exits when warranted

45. 45
VC Tom
VC Johnny
VC Amy

46. Top 8 Mistakes
Emerging Fund
Managers Make