How can you balance existing and new investments?

Proper study of asset,asset quality and diversification will ensure to get good returns. Time to time review of fund is also important because all time same every Sector has not in Demad.Hence Please study of demand and supply gap is also important for any sector of bullish.

Understand and communicate with your LPs about their return expectations, time horizon, risk taking etc so that you can plan accordingly. Initially, the fund invests in lots of startups for the first 1-3 years and then slows down for years 4-6 and finally focuses on closing the funds with good exits in years 7-10. This also depends on the opportunities present in the country, government policies, good community of founders and VC. One needs to also SAVE a good amount of capital for re-investing into the successful portfolio startups to get maximum returns from them.

The fund cycle is incredibly important of course. I would add that during the investment period it's important to keep track of the intended investment pace and the involvement of the GPs/Partners in each underlying asset. As a rule of thumb, I'd say that each GP cannot hold more than 4/5 board positions at once. These commitments are very time consuming. As usual, there are exceptions to all rules; but it's incredibly important to account not only for the capital constraints, but also for the time/HR constraints.

Certainly, in the context of venture capital, it's important to note that VC returns often follow the Power Law. This means that a small percentage of investments in a VC portfolio, typically referred to as the "vital few," generate the majority of returns, while the majority of investments, the "trivial many," may not yield significant returns or could even result in losses. This distribution aligns with the broader concept of the Power Law, where the impact of a few outliers is disproportionately significant in the overall portfolio's performance. In the VC world, this underscores the importance of carefully selecting and nurturing high-potential startups while being aware that many investments may not achieve the same level of success.

X Work on Weaknesses - poor portfolio startups Instead, your successful startups is EVERYTHING in VC space. VCs go through 1000 of pitches, invests into 10 and ONLY 2-3 are SUCCESSFUL. But these 2-3 should be so successful that it should compensate for your whole 10 investments like usually VC gets 10-1000X multi-bagger returns like 1 Cr invested can become 100s of Crores. This is the BUSINESS Model in VC industry

Diversification is a MUST to identify your lucky 10-100X bagger opportunity. VCs invest in very early stages and it's not possible for them to rightly predict which particular startup will be very successful as there is minimum data available and startups pivot all the time. Nearly every startup changes its idea/ business model/ market/ team members so many times that nothing can be guaranteed. All external factors like government policies, macro etc all change. So, to minimize external + internal risks, diversification is the solution.

In my experience, you increase your chances of finding a winner when you also leverage ecosystem networks that target female founders and minority founders. These include local angel investing networks, local VC funds and accelerators/incubators whose theses is to invest in underrepresented groups.

VC is a NETWORK game, like it or not !! Here, Network == NET WORTH Building good relationships is required for it like - - to get the best deal flows to invest into - to get good opportunities for portfolio companies for future funding and exits - to get a good fundraise from LPs to start the fund - to understand different players, competitors etc in the industry - to get good talents to work in your company & many more

Prioritize Portfolio: Allocate time and resources to actively manage your existing portfolio companies. Set Investment Criteria: Define clear criteria aligned with your fund's strategy for evaluating new opportunities. Time Management: Schedule dedicated blocks for portfolio management and new deal sourcing. Delegate Responsibly: Consider hiring support staff to assist with due diligence and sourcing. Open Communication: Maintain transparent communication with founders, offering support as needed. Discipline: Stick to your investment strategy and avoid rushing into deals. Mentorship: Seek guidance from experienced VCs for valuable insights. Periodic Evaluation: Regularly review and adjust your portfolio strategy as your fund evolves.