Morgan Creek Digital co-founder Anthony Pompliano has launched a rolling VC fund to invest in early-stage tech companies. Pompliano, who also produces a popular podcast and newsletter, will continue his work at Morgan Creek Digital and with its portfolio companies.
Accredited investors are able to invest in the fund through AngelList on a quarterly basis with a $40,000 minimum annual commitment.
According to an announcement on The Pomp Letter, every person I admire lives their life based on a small number of simple principles. One of my guiding principles has always been: “You will never regret betting on yourself.” This mantra has been fairly easy to implement in various aspects of my personal and professional life, but one area that remained tough to execute this mindset was investing.
In order to bet on yourself as an investor, you historically had to either: (a) build a large company and personally capture significant financial upside or (b) compound money at an impressive rate for decades to build a big capital base. There are plenty of people who successfully accomplished one, or both, of these milestones. I am not one of those people.
A third path was recently created — frictionless solo GP fund structures. These “rolling funds” allow any individual to leverage their personal brand, audience, deal flow, and experience to raise capital and deploy it across the business funding cycle. This third path is likely to have a meaningful impact on the venture capital ecosystem:
- More individuals will create funds
- Founders will have more optionality
- LPs will have more flexibility and transparency
- More capital will flow into the asset class
- Innovation will accelerate
Some people may think the rolling fund structure looks like a shiny flash-in-the-pan opportunity, but as we know, the greatest innovations historically have looked like toys at inception. This rolling fund structure will be the beneficiary of many other macro trends underway.