We are true partners with the institutions we serve, and the managers with whom we invest. Our long-standing relationships with many of the more notable venture capital firms in the nation, coupled with our experience across market cycles, provide us with coveted access and an informed, long-term perspective. Those relationships also speak to our value as advisers to firms both old and new. All of which serves our mission to identify and back venture capital funds that have the energy, vision, knowledge and resources to capitalize on new, breakthrough waves of technology that will create market leading companies.
We are providing our investors and the managers in whom we invest with benefits accruing from over 65 combined years’ involvement in the venture capital industry –Access, Experience and Acumen. Our unique investment structures defy the traditional fund-of-funds model, allowing our institutional investors greater collaboration and control of portfolio construction – all done at historically low fee rates that reflect a variable cost infrastructure developed with 21st Century technologies.
CREATIVE, THOUGHTFUL AND BESPOKE ACCESS TO HIGH-PERFORMING VENTURE CAPITAL FUNDS
Sophisticated institutions are interested in a more customized and targeted approach to venture fund investing. We believe that close collaboration with our investors is important to achieving desired returns and portfolio objectives. We listen to each investor and thoughtfully select investments that achieve their goals.
We work with a small number of large institutional investors and provide them meaningful access to venture capital funds. We offer semi-discretionary, separate account fund management, where investors maintain a degree of control of commitment decisions to ensure each investment fits within their larger portfolio. Our extensive experience includes working within the policy and reporting requirements of a variety of investors, including public pension plans. And we believe that alignment of interest with our investors is a necessary requirement. We are in the business for the promise of returns from investments, not the hope of rich fees from increasing assets under management.
SOLVING FOR PROBLEMS IN THE TRADITIONAL FUND-OF-FUNDS MODEL
We service just a few large institutional investors very well, and maintain a focus on our highest-performing venture relationships.
The venture capital fund investing business is not very scalable. Firms that raise large blind pools and maintain broad venture firm relationships invariably are forced to back median performers.
Our bespoke portfolio development model incorporates the best aspects of traditional fund-of-funds with customized, collaborative venture investment selection.
“Blind pool” venture funds-of-funds still work well in specific instances, but they generally have become less desirable in a maturing investor landscape. Given the lack of control and visibility of investments and pacing, it’s difficult to know how they fit within an investor’s larger portfolio. Our approach to portfolio development includes active collaboration with our investors to ensure each investment fits well in the context of their broader portfolio objectives.
We charge very competitive fees without sacrificing the quality of investments.
The traditional fund-of-funds fee drag can be significant, as fees are usually charged on committed capital from the outset. Our fee schedules are designed to minimize the J-curve effect of fees and more directly match fees with commitments.
Our variable cost, out-sourced infrastructure model allows us to focus staffing on core competencies and leave fund administration and other functions to best-in-class expert service providers.
Legacy fund-of-funds organizations have high fixed-cost infrastructures that require them to continually “feed the beast”. We do not feel pressure to increase assets under management simply to maintain an existing cost base.
WHO WE INVEST IN
Tiger Iron endeavors to invest in the best venture capital firms in the world. We are fortunate to have partnered with many elite managers, several of which have become perennial powerhouses within the world of venture capital. Those relationships have given our investors exposure to some of the most transformational companies ever created.
We seek to invest in venture firms focused on formative stages of company development. While our portfolio skews toward the early stages, we also invest in multi-stage funds with a proven ability to build a portfolio of truly ground-breaking companies. In addition, we have the flexibility to be an additional source of downstream capital for venture firms as a co-investment partner whenever those opportunities arise and can be mutually beneficial.
Tiger Iron also believes that some of the most innovative investment strategies are often pioneered by new or under the radar teams that have yet to be recognized. We are frequently hunting for unique managers that we believe have the potential to become leaders in the industry.
FOSTERING DEEP RELATIONSHIPS WITH VENTURE FIRMS
We understand that venture is a people business and goes far beyond simple capital flows. We invest in people as much as we do in their strategy, vision, and track record. In that regard, we consider our venture managers to be our peers and we strive to build deep, mutually beneficial partnerships that transcend the historical norms of limited partner/general partner relationships.
As an investor across the entire venture spectrum, we have a unique industry vantage point that can generate meaningful insights that we openly share with our venture managers. In breaking historical standards, we engage our managers with a great deal of transparency and accessibility, much like we do with our own limited partners.
CRAFTING COLLABORATIVE PARTNERSHIPS
We are highly collaborative with our managers and strive to be true partners with them. In doing so, we work hard to be supportive and provide mentorship on best practices wherever it may be valuable. We also openly facilitate introductions upstream and downstream across our diverse network of investors, venture relationships and entrepreneurs.
Smaller venture managers can often become constrained in their ability to “lean in” on their best investments as companies mature and graduate beyond the scale of the managers’ existing pool of capital. As a co-investment partner, Tiger Iron can be a source of follow-on capital -- thereby providing managers with additional resources whenever it may be appropriate.
DEPENDABLE SOURCE OF CAPITAL
In an ever-changing industry with many participants, Tiger Iron Capital is seen as a stable source of patient, long-term capital coupled with deep sector expertise. In contrast, many institutional investors focus on a myriad of asset classes and their commitment to venture can oscillate. Others are often seen as “tourists” and go in and out of the asset class as market conditions vary. We are fortunate to have institutional limited partners that share our commitment and long-term vision for the asset class.