SV Angel

Be an LP for the learning, not the returns

Shaan asked friends who are LPs in Andreessen, Founders Fund, and SV Angel whether it's a good way to make money. The answer: for pure returns, deploy into your own business or liquid assets instead. The real edge of being an LP is the inside view of every deal, which makes you smarter and more money long-term.

“I said, so why the hell do you do this? And they go, oh, I do it because A, I like innovation, B, by being an LP, I get to see all their stuff. So it's a huge learning advantage, which in the end makes a lot more money for me at the end. And so, yeah, I make some money on the returns itself. But then I also get to learn throughout the whole process because I'm on the inside of these deals.”

Steal thisTreat LP positions as a tuition for inside access to deal flow and thinking, not as your primary return engine.