Venture Cooperative

Power laws seem to be ever-present in human endeavor, or at least in the conduct of rigorous due diligence (DD). Warren Buffet famously noted that a receding economic tide reveals who’s swimming naked. A view into the conduct of VC due diligence can be just as revealing. To be fair, there is some impressive DD being executed within our industry, but we learned early on that when it comes to how many firms actually conduct rigorous DD, let’s just say that the 80/20 rule is still very much alive and well. Early on as angel-investors-turned-VCs, we were inclined to be in awe with “institutional” investors. After all, they were the big kids vetted by LPs and empowered by fee-funded resources. We couldn't wait to be in syndicated deals with the pros, hungering for all that we would learn from them. And learn we did; the good, the bad, and ugly! Fortunately, it was an early deal that humbled our naivete. We were invited into our first syndication with some very established VCs; a pinch-me moment. Part of the syndication was an opportunity to see for the first time other VCs’ DD and deal memos. Holy grails of learning, we thought. Ouch! Where was the detailed P&L analysis, thoughtful bottoms-up TAM assumptions, investigative insight into the founders, prospective customer feedback, pro-forma org chart visualizing the functional and reporting to be built with our capital, a granular map of competitive risks; we could go on. So much was either missing or superficially commented upon. Our own analysis revealed some key concerns. And yet, these were the pros. They were intuitional investors with years of experience. Maybe we were missing something. We placed more weight on their reputation than we did on our own analysis and moved forward with the investment. And that was the last time we did that! Original and rigorous DD, and not following the VC pack, became our bedrock tenant, so much so that we have led more deals than not, even when we are not the largest check. We have learned that the value of sound DD goes beyond the identification of a good deal – it can build lasting trust with founders. The DD process, when done rigorously, can help a company create a more effective capital strategy and show a founder that we are willing to roll up our sleeves and work side by side with them. It also produces better ROI! Written by David Arcara

Cohort 8 is officially underway! We’ve seen all your posts about how excited you are to start Venture Cooperative, and trust us—we’re just as thrilled! ?? Over the next few months, we can’t wait to highlight each of you, share your journey, and support you as you dive deep into venture. This cohort is already shaping up to be something special, and we’re honored to be part of it with you.

Congrats to Venture Cooperative fellow Ayman Hatif Hatif on joining Afrimobility as a VC Analyst Intern for his end-of-studies internship! Wishing him all the best as he continues his venture journey!

Huge congratulations to Shauna Sweeney, CEO of our portfolio company tendercare, for an incredible feature on CNBC with Jon Fortt on National Caregivers Day, sharing her journey and mission to reshape caregiving. Watch the full segment below: https://lnkd.in/gcB4ETWp

When we raised Fund 1, it was fueled by the trust and camaraderie of friends and former colleagues. These were people who had seen David and me in action, knew our work ethic, and were willing to take a chance on us as we transitioned from angel investors to venture capitalists. For that, we will forever be grateful. But fast forward two years, and we were back in front of these same LPs, this time asking them to take another swing—not just because they trusted us personally, but because they believed in the vision we had for Laconia. By the time we began raising Fund 2, we had brought on Geri as our third partner and were ready to scale and grow a truly special venture firm. But there was a big hurdle: Fund 1 was still in its early days & venture funds take time to show results. While we had a few markups in Fund 1, it wasn’t enough to point to a proven track record. Asking Fund 1 LPs to reinvest without fully realized results was daunting. It’s worth noting that we returned Fund 1’s initial capital within those first four years. This performance underscores the strength of the companies we backed & the value we’ve created for investors, even in the early stages of building Laconia. To their credit, 85% of our Fund 1 LPs came back in for Fund 2. That kind of loyalty and trust is rare and speaks volumes about the caliber of people who believed in us from the beginning. But even with that vote of confidence, we needed to expand our LP base to build momentum. And that’s where the real challenge began. David & I are not natural self-promoters. The fundraising process for Fund 2 required us to stretch beyond our comfort zones. Networking became our daily reality. We leaned heavily on referrals and spent countless hours explaining our vision and strategy to potential LPs who had no prior history with us. This wasn’t just about pitching a fund; it was about selling the long-term vision for Laconia and the value we could bring as a concentrated, boutique venture firm. Through grit, determination, and a lot of late nights, we secured $13 million for Fund 2. By some measures, that’s not a large fund. But for us, it was significant. We’re a concentrated firm by design, intentionally working closely with fewer companies. Fund 2 allowed us to double down on our thesis and continue building something unique in the venture ecosystem. Raising Fund 2 taught us that being a good investor is only part of the job. Building a venture firm requires a strong LP pipeline, constant relationship-building, and the ability to communicate your vision in a way that resonates with others. It’s not easy, and it’s not natural for everyone. But for David, Geri, and me, it became an essential part of growing Laconia into the firm it is today. Looking back, Fund 2 was harder than Fund 1 in every way. But the challenges we faced during that time laid the foundation for everything that followed. And for that, we’re deeply grateful.

We’d have to say this is a full-circle moment! ?? Huge congrats to Dorothy Chang on becoming a Venture Partner at Flybridge! Dorothy has been a longtime friend of Laconia, a collaborator for years, and one of our Venture Cooperative fellows, so seeing her step into this role is especially exciting. Congratulations!

Our Venture Fellow, Felita Harris, sat down with Shopbop's Chief Merchandising Officer to discuss RAISEfashion’s mission and the importance of uplifting BIPOC designers. In support of this work, Shopbop has made a generous donation to RAISEfashion—watch the full conversation below!

On the latest CustomerXSuccess podcast, Geri Kirilova and Mirit Lugassi joined our Venture Fellow, Parul Bhandari, to discuss Laconia’s investment philosophy, market trends, and why customer success is key for SaaS companies. Parul first connected with Geri and Mirit through Venture Cooperative, expecting to learn about VC—but she got much more. The hands-on experience, deep dives into due diligence, and candid insights reshaped how she sees investing. One of the best parts of Venture Cooperative? The collaborations that continue long after the program ends—just like this one. ?? Listen here: https://lnkd.in/gsRUcgsX

There’s something funny about serendipity – you never know when it’s going to raise its head. In building Laconia, we’ve experienced more than our fair share of these moments. One of the best examples? Meeting Geri Kirilova. It was a cold and wet Monday night in the fall of 2015. One of our LPs was celebrating her 50th birthday at an Irish pub in the Financial District. I’ll be honest: I wasn’t exactly thrilled about going. It was miserable outside, I lived uptown, and the thought of schlepping downtown was far from enticing. But this person meant a lot to me, and I couldn’t miss the chance to give her a big birthday hug. (Yes, I’m a hugger.) So, I pulled on my coat, hopped on the 6 train, and off I went. The party was on the second floor of the pub. I climbed the stairs, and as I reached the top, I bumped into an industry peer. Standing next to him was a young woman with?wild?hair – the kind of hair you don’t forget. We exchanged quick small talk, and I learned she was a senior at NYU Stern. It was one of those blink-and-you-miss-it moments – maybe a minute with the peer and 30 seconds with the young woman before I moved on. I made my way through the room, doing my rounds: hug, kiss, hug, kiss. Thirty minutes later, I was back on the 6 train, headed uptown, thinking little of it. A few weeks later, David Arcara and I were having a working lunch. We were tossing around the idea of bringing on an intern – yes, a?paid?intern – to help us with some projects. And out of nowhere, I thought of the young woman I’d met that rainy night. I told David, “I met this young lady at a birthday party. She made a strong first impression.” That was it. We decided to reach out. Fast forward: That young woman was Geri Kirilova. Today, Geri is our third pillar and Laconia, our LPs, and the founders we support are all better off because of her. What started as a brief, forgettable moment at an Irish pub turned into one of the most serendipitous decisions we ever made. Geri’s growth from intern to Partner has been nothing short of extraordinary. Her tenacity, judgment, and keen understanding of early-stage investing have played a critical role in shaping Laconia into what it is today. As for serendipity? Sometimes you just have to take the 6 train on a rainy night, climb the stairs, and say hello. Written by Jeffrey Silverman