What Kind of VCs Can Get Money from Fund of Funds? We Have the Answer After Reviewing 2000
Moses Capital, a fund of funds focused on early-stage VCs, reviewed over 2,000 funds over two years and invested in 46, a 2.3% selection rate. The market is larger than perceived, with many new funds remaining invisible to most LPs. They identified four GP archetypes: founder-turned-investor, spin-out from established VC firms, community-native managers, and quiet technical experts. The top reasons for rejecting 97% of funds included team inexperience (30%), poor portfolio construction (25%), weak track record (20%), strategy misalignment (15%), and fundraising challenges (10%). The highest-quality deal flow source emerged unexpectedly from blind founder reference calls during due diligence, where consistently praised investors became top targets. Building a reputation through prepared, respectful engagement led to strong GP referrals and trust within the VC ecosystem.
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