Vice Ventures

Vice Ventures: build a VC brand around what other funds' LPs won't touch

Most VCs can't invest in 'sin' categories because their LPs (pension funds, endowments) forbid it. Vice Ventures turned that constraint into a brand by specializing in sex, drugs, alcohol and other vice companies that mainstream funds avoid.

“So Vice Ventures came out and they were like, look, you know, sex, drugs, alcohol, whatever, right? Like they're basically like taking sort of the seven sins. And they were like, we specifically look for companies that are doing business in this— in these areas and we'll invest in them. And I think it's a very— I think it's a— if you're going to do a venture fund, you could either just make another cookie cutter Hey, we're a seed fund. Come to us instead of all these other guys. Or you take a focus and build a brand around being different.”

Steal thisPick a focus your competitors' constraints forbid them from touching, and build your brand around being the one who will.