The Business of Venture Capital. Mahendra Ramsinghani

      Just as smart founders select the right VCs on their board, the best fund managers are able to pick the LPs that matter, can add value, and shape their journey. Unfortunately, there are very few of these. Pick the wrong LP and you have a toxic problem. Some are like absent parents — who show up for an occasional annual sporting event. The best ones build rich, collaborative, two-way networks.

      The business of VC is like a two-sided marketplace. On one side are the investors — your LPs and your shareholders. On the other side are your founders. You cannot serve just one side well — you have to ensure both sides get some love, respect, and, above all, performance. You want LPs for life — not just for one fund. But it's often the first fund that counts — if you do well, the rest becomes easier.