Fund Raising to Reduce Risk

The blog reflects on a 2006 TeXchange event about Texas-based venture capital, focusing on Austin Ventures' investment strategy. It discusses the concept of raising the minimum amount of money to reduce the maximum amount of risk, a principle the author aspired to apply in financial models for startups. The blog also touches on the challenges of discussing risk with founders, who often overlook it. It concludes with observations on the changing landscape of venture capital in Texas, noting a shift in Limited Partners' investment preferences and the decline of Austin Ventures.