A panel of limited partners dished about how they invest in new funds, venture returns and what they'd like to hear at firms' annual meetings during the 2007 NVCA annual conference. In short, the bar is extremely high for new funds and only general partnerships with a track record of success somewhere else can really raise funds. What's returned to LPs doesn't always correlate to reported IRRs and the business is all about getting your hands on a very small number of returns, which haven't been all that great lately. They don't mind paying hefty fees for the returns, as long as they're delivered. Annual firm meetings should be short and sweet, focus on a mix of big picture trends driving investment and portfolio-company detail, less scripted with more time for conversation, and offer details on how net IRR correlates to benchmark. And firm brand extensions overseas are a good idea, in theory, but firms need to be careful about managing those relationships so their partners abroad don't break off on thier own.—Carolyn Murphy
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