Startup Funding Espresso – What Is a Fund of Funds

Investor Connect Podcast · Dec 9, 2025 · 2m

What Is a Fund of Funds Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Unlike most venture capital funds that invest in startups, a fund of funds invests in other funds that invest in startups. Instead of investing in multiple funds, an investor can gain diversification by investing in a fund of funds. As with all good VC funds, there's limited availability for investors to join. The standard return on a fund of funds investment is 10X. There's competition among the limited partners to get in. There are challenges with a…