E432 | Ertan Can, Multiple Capital: Investing in Micro Funds For Outlier Returns

In today’s episode, Andreas Munk Holm talks with Ertan Can, the Founding General Partner of Multiple Capital, a venture capital fund based in Luxembourg. Together, they delve into how micro funds work and why they’re becoming an attractive investment option for limited partners.Ertan discusses the role of manager selection and the benefits of a diversified micro-fund portfolio. He outlines LPs' challenges in sifting through hundreds of emerging funds each year, noting that a disciplined approach is needed to identify the best opportunities. The discussion also touches on the influence of local networks and market niches in sourcing high-quality deals and future trends in venture capital, highlighting how a strategic focus on micro funds may offer more sustainable and robust returns for LPs.Chapters: 02:15 Importance of Fund Size03:34 Emerging Managers and Small Funds04:56 Performance of Small Funds11:08 Management Fees and Small Funds12:41 Exit Valuations and Small Funds13:31 Summary of the Presentation14:49 Post-Presentation Discussion16:39 Challenges for LPs in Selecting Funds17:43 Optimal Number of Fund Managers19:13 Debate on Micro Funds21:27 Risk Perception in Venture Capital22:34 Alternative Investment Strategies26:37 Geographical and Vertical Specialization27:29 Future of the Venture Market