E251: Why 95% of Funds Don’t Pass LP Diligence w/Alex Edelson

In this episode of How I Invest, Alex Edelson discusses how seed funds are leveraging AI to enhance various aspects of their operations, including sourcing, diligence, and portfolio construction. Alex shares insights into what differentiates top-performing GPs and the importance of building strong relationships with both founders and LPs through transparency and constructive feedback. He emphasizes the significance of conducting thorough references to uncover valuable insights about a GP's past behavior and discusses the challenges emerging managers face in raising capital in a competitive market. Alex also touches on the evolving venture ecosystem and the need for LPs to adapt their evaluation criteria to identify uniquely positioned firms.