Koda Capital shifts focus to smaller VC funds for better returns
Co Ventures and Side Stage Ventures say smaller VC funds have the maths on their side — it’s easier to deliver outsized multiples from smaller pools of capital.
Koda Capital, one of Australia’s largest private wealth firms, is shifting more capital into smaller venture capital (VC) funds, favouring them over bigger players in pursuit of better returns.
Speaking at the Australian Investment Council’s Venture Summit in Sydney, Koda partner and adviser Charles Moore said the traditional approach had been to invest with the biggest managers with the longest track records.
“One of the things we've witnessed over the years is that the bigger the capital raising, the more difficult it is for those managers to deploy that capital meaningfully to companies without diluting the portfolio,” he said.
Koda is now deliberately backing smaller managers who can offer more hands-on support to founders.
