MobileCrunch pointed me to a new seed fund, Right Side Capital Management. The interesting thing about this fund, as reported by MobileCrunch and as mentioned on the fund’s site, is that they want to make 100+ investments a year - with minimal due diligence. I’ve mentioned before that I think that there is space for innovation in the early stage financing world, and WOW it looks like this team is trying to do it!
Supposedly they will make investments based off of an online application with potentially no face to face interaction. This is kind of crazy, since trust in the team is the most important. This seems like a pretty serious experiment in early stage investing. If it works then has this investment team found the equivalent of an ETF to actively managed mutual funds?
I’m not really sure who the founders of the fund are (I actually wish they would have more detail on their bios; when I was a VC the bio with no company name or position really annoyed me.) But it’s also not clear how much operation or next fund raise help they will offer, so I don’t know how to think about them in terms of helping the company get to the next level. With 100 investments a year I’d think that they would be too busy to actually provide any real guidance to their portfolio companies.
I guess I’m pretty skeptical that this is going to work, but I appreciate the willingness to try something totally new and wish the team at RightSide luck! It’s a cool idea in a space that needs innovation (and capital…)
