Problems don’t come in a straight line. When they come, they come in slow. They come in fast. They come in all at once. From decisions taken years back. From calls made yesterday. Flying in from all directions. Thick and fast. Bringing with them a perplexing mishmash of thought—some parts, decisiveness. Other parts, doubt. Long stretches of maybes. There are few places in this world where this state of existence is exemplified more fully than a venture capital fund caught in the middle of raising and returning a fund.
The Blume conundrum
Fund I is on you. Fund II on hope. Fund III on performance. All of this together, on a ticking clock is the real test of a fund manager
Since early last year, the firm has been asking the team to slow down, cut fewer cheques
In 2019, Blume’s Fund I completes eight years. This is the time for redemption. For payback. Not on paper. In cash
At the same time, Blume is in the market to raise $80 million for its Fund III. The firm wants to have a first close in 3 months
Year after year, Blume cannot rely on strategic partners. Many don't need the firm anymore as they have started out on their own