Why LPs Ignore Startup Runway Math

Limited partners often miss the most critical signal in a venture capital fund’s portfolio: the aggregate cash burn rate of underlying startups. This episode examines how ignoring basic runway math leads to blind spots in vintage year returns. We analyze a specific case where ten percent of a portfolio consumed fifty percent of capital reserves, dragging down overall IRR despite headline growth metrics. Lucas and Luna break down the mechanics of dilution, follow-on funding rounds, and why LPs need to ask GPs about weighted average burn, not just total committed capital. #VentureCapital #LimitedPartners #StartupRunway #CashBurn #FundPerformance #GPDueDiligence #CapitalEfficiency #IRRAnalysis #PortfolioMonitoring #DilutionRisk #FollowOnFunding #VintageYearReturns #FinancialModeling #StartupValuation #RiskManagement #PrivateMarkets #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo