"What We Talk About When We Talk About "Curation": Insights from Running a Micro VC"

"What We Talk About When We Talk About "Curation": Insights from Running a Micro VC"

In today's digital age, where information is abundant and easily accessible, the role of curators has become increasingly valuable. Curation is not just about acquiring and selecting content; it is also about contextualizing that content, finding what is interesting, meaningful, and relevant. Joanne McNeil captures the essence of curation as a form of creative and intellectual labor, a means to distill and transfer valuable ideas quickly.

Peter Hopkins echoes this sentiment by highlighting the importance of focusing on finding the right ideas. Ideas are the lifeblood of progress, and good ones can make all the difference. However, the challenge lies in identifying these ideas and helping to refine them. Curation serves as a means to achieve this end, separating the wheat from the chaff and ensuring that only the most valuable ideas are shared and amplified.

Now, let's shift our focus to the world of micro VC funds. Running a micro VC fund is no easy task, and there are valuable lessons to be learned from those who have embarked on this journey. One of the first things to understand is that most VC funds fail. Just like startups, the majority of VC funds will not even achieve 1x returns. This highlights the importance of doing thorough homework before deciding to start a fund. Talking to at least 10 micro VCs can provide valuable insights and help you make an informed decision.

Financial stability is another crucial aspect to consider. Starting a micro VC fund requires a solid financial situation, as most of the fund's capital needs to be used for investments, not personal expenses. Even with a $10 million fund, the yearly budget for running the fund may only be around $200,000. This means that the fund manager's salary may be significantly lower than what they made in previous jobs. Bootstrapping a micro VC fund can be challenging due to the lack of salary and restrictions on making money outside of the fund's activities.

Furthermore, fund managers often invest a portion of their own capital into the fund. This is seen as a sign of commitment and alignment of interests with the limited partners. The average time it takes to raise a micro VC fund is approximately two years, and SEC rules limit the number of accredited investors that can be accepted into the fund to 99. This means that fundraising requires a strategic approach and cannot rely solely on small investments from friends.

In the world of early-stage fundraising, meritocracy is not always the driving force. The future of funding should be more focused on the speed of execution rather than external factors such as appearance or communication style. This highlights the need for a more inclusive and diverse funding landscape, where ideas and execution take precedence over superficial attributes.

In conclusion, the worlds of curation and micro VC funds share common threads. Both involve finding and amplifying valuable ideas. Curation serves as a means to distill and transfer these ideas quickly, while micro VC funds provide the financial backing needed to bring these ideas to life. If you are considering venturing into the world of micro VC funds, it is vital to do your homework, ensure financial stability, and embrace the importance of execution speed. By understanding these key insights, you can navigate the challenges and maximize the potential for success.