Winds of Change
The Weathergage Blog

Emerging Managers: Minefields or Diamond Mines?

5/18/2017 by

Are emerging managers risky? Many investors in venture funds treat them as if they are not only risky but toxically so. And yet, we find that many of the best performing funds of all time have been “Fund I’s.” We believe investors’ avoidance can be attributed at least in part to concerns about career risk… Read More

Life Science – About Data and Miracles

5/12/2017 by

Regular readers may recall my blog post last year titled Gene Therapies Provide New Hope for Families, in which I detailed recent advances in the field through the lens of the Calliope Joy Foundation (CJF), which advocates for the care of children with metachromatic leukodystrophy (MLD). I recently attended a dinner in Philadelphia hosted by… Read More

The (Not So) Limited Partner

3/1/2017 by

First, let’s get something straight. General Partners of venture capital funds are responsible for setting strategy, making investment decisions, running their firms, and all other decisions that come from the many powers enumerated in a limited partnership agreement. In contrast, Limited Partners’ enumerated powers are few, but occasionally potent.  We are called Limited Partners for… Read More

The Path to 2017 – An Update on the VC Environment

1/13/2017 by

In keeping with traditions around the New Year, I’d like to look back on the way market conditions for venture backed companies changed in 2016 and then look forward in order to make a few observations about 2017. I’ll begin by laying out a framework that puts (some of) the events of 2016 into perspective.… Read More

The Unexpected Winner of the Distribution Derby

12/15/2016 by

IT-focused VC funds seem to attract all the attention, and most of the capital, of investors. Yet, if one is keeping score, one would be well served to check in on recent returns and distributions from Life Science funds. Many limited partners wrote off Life Science several years ago. At the time, it seemed to… Read More

A Glimpse Into the Weathergage 2016 Annual Meeting

12/2/2016 by

Weathergage Capital  Tim Bliamptis Shares A Peek through the VC Looking Glass  Tim Bliamptis: Watching the Waves Unfold – An Update on the VC Environment Felicis Ventures The Steps to Success in Venture – Fireside Chat with Aydin Senkut Aydin Senkut Discusses the Three Skills a VC Needs to Succeed Aydin Senkut Shares His Views… Read More

Deep Dreams

9/14/2016 by

In my previous blog A(l)chemical Reactions, I drew an arc between the medieval proto-scientific philosophy of alchemy and self-driving cars. The connection wasn’t as tortured as one would think and it allowed me to get across two related ideas. First, important insights may come from unexpected places and applied in unexpected ways to unexpected things.… Read More

The Paradigm Shift Continues: Minding the Early A Gap

8/23/2016 by

By: Tim Bliamptis and Judith Elsea     Roughly ten years ago, the cost of developing software dropped precipitously. Not surprisingly, this drop in the cost of developing software made starting software companies extremely capital efficient. This shift created a very attractive opportunity for seed stage investors. Because these companies needed only modest amounts of… Read More

Shorter J-Curves Are the Silver Lining in Shorter Fund Cycles

7/21/2016 by

Many fund investors voice a preference for three and four-year fund raising cycles. Longer fund raising cycles allow the investor time to see previous funds mature, giving them greater confidence that their previous decision was the right one. Conversely, shorter cycles create a feeling of unease as two year old funds rarely have meaningful performance… Read More

Weathergage is a nautical term that indicates a favorable position relative to the wind. In the Age of Sail, a ship that "had the weathergage" had a great advantage because it better controlled the time and sequence of battle.