Chris Sacca is a legend in the angel/VC world. His first VC fund — Lowercase Fund I — has been called the best-performing fund of all time.
Here’s how Fortune described it back in 2015.
Can you name the best-performing venture capital fund in history?
My guesses would have been something from the dotcom era or a fund that got in early with Google (GOOG) or Facebook (FB). But yesterday I was leaked some confidential documents from a limited partner in Lowercase Ventures Fund I, an $8.4 million seed fund that closed back in 2010. Active portfolio companies include Uber, Docker, Optimizely and StyleSeat, while exited deals include Instagram (sold to Facebook) and Twitter (TWTR).
The fund had a whopping 216x return on the original investment by 2015, according to a Forbes report.
So when I came across an article titled “The search for the next Chris Sacca,” I was definitely going to read it. And I strongly recommend you do too.
Before considering who might follow in Sacca’s footsteps, the article makes some key observations about him and Lowercase Fund I. Here are some of the highlights.
- Micro fund (<$10 mil)
- Very well connected in the valley
- Builder and businessperson at heart
- Had great mentors to teach him about the VC game
- Possessed unicorn radar; seemed to see the future
- Went from being an angel to raising a small fund
- Only got involved in deals where he could personally impact the outcome
We can learn from these characteristics and apply them to investing on AngelList. I tend to look for up-and-coming syndicate leaders who fit Sacca’s description. Some examples include Peter Livingston (Unpopular Ventures), Zack Coelius and Ed Roman’s Hack VC.
They’re all young, hungry, well-connected and talented. This is the type of syndicate I like to join on AngelList.
Sure, it’s good to invest with proven legends like Naval Ravikant (if you can swing the high minimum investments). But it can be hard to get into those syndicates. And historically the best startup investment returns are made by young and hungry investors.
So I’m always on the lookout for young, talented syndicate leaders. Their syndicates also tend to have lower minimum investments — which makes it easier to get to know them and build trust by participating.
There are more syndicates than ever before on AngelList, so take a look around. Look for leads who tend to get into high quality deals with great co-investors.