We’re already on week 9 of our inaugural fund modelling cohort, with more than two thirds of the program behind us already. Last week we hosted our LP Expert Panel, an invite only session where cohort members get to go deep with experienced LPs on how they actually evaluate venture funds. At some point the conversation drifted into one of those extremely nerdy venture topics: reserves.

One resource that came up during the discussion was the classic Sapphire Ventures piece “Dirty Secret: Venture Reserves Are Not Always a Good Thing.” It’s old, but still very relevant.

The punchline lines up pretty closely with what we’ve been seeing in our own modelling work. Follow ons only really make financial sense if you’re right more than 50% of the time. In other words, you need to be right more often than you’re wrong.

That topic ties directly into the sessions we’ve been running on portfolio construction and fund modelling, which brings me to a few things worth flagging this week.

First, today’s masterclass goes deeper into portfolio construction and decomposition, so if you’re planning to join, make sure to register.

Second, we’re hosting an AMA with Thies Sander, Founding Partner at Project A.

And third, after a lot of requests, we finally decided to open up the vault and share our full EUVC fund model. Scroll down for this one. We’ve been sitting on it for a while. Only available to EUVC Academy members.