Friends of MDSV Capital,
Today we announced that our Capital Extension Program (CEP) for Emerging Managers in venture has launched across the Sydecar platform.
- Over the last 15 years, 92% of all tech "unicorns" had at least one emerging manager fund who invested in the earliest days of the company.
- Incredibly, 98% of the time these emerging manager funds did not invest beyond the Seed rounds in their outliers, giving up significant (3X-6X) additional returns to later stage investors
Emerging Manager funds consistently outperform in venture capital and have proven themselves adept at identifying outliers at the earliest stages - and yet they almost never invest beyond the earliest stages in their portfolio winners.
MDSV's Capital Extension Program is THE OPPORTUNITY FUND for hundreds of emerging manager funds who have outliers in their portfolios. MDSV provides the capital for qualifying opportunities and splits the carried interest with managers, helping small funds "punch above their weight" and generate even better returns for their LP's.
With today's announcement, the hundreds of emerging manager funds and syndicate leads who use Sydecar as their fund admin or SPV platform can apply to the CEP program with a few clicks and access $200K-$5MM in funds for follow-on investments into qualifying outliers.
For MDSV Capital, today's announcement and upcoming partnerships will further enhance the quality of investment opportunities for our LP's and strengthen our developing role in the emerging manager ecosystem.
The full press release is attached and embedded below.
A streamlined way for Emerging Fund Managers and Syndicate Leads to secure additional capital for the follow-on funding rounds of their fastest growing portfolio companies.