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In an exclusive with TechCrunchMichael Kim talks about Cendana Capital‘s recent funding and thoughts about the current market. Here’s what they had to say:

Michael Kim, the founder of Cendana Capital, is a go-to resource for burgeoning seed-stage fund managers, with Cendana’s investment history in numerous successful VC teams such as Forerunner Ventures, K9 Ventures, and IA Ventures.

  • Cendana Capital’s Ongoing Growth: Cendana’s recent accomplishment is its successful accumulation of $470M across several new funds, elevating the firm’s total assets under management to $2B.
  • Allocation of New Funds: Of the newly secured funds, a significant portion of $340M is designated for investment into U.S. based investors. Meanwhile, $67M will be channeled to managers outside the United States. Additionally, Cendana has allocated $30M to invest directly in startups.
  • Collaboration with the University of Texas: An interesting aspect of Cendana’s new venture is a collaboration with the University of Texas, which committed $30M.
  • Thoughts on the Market & Venture Strategies: Kim indicates a shift in the landscape over the past decade, where seed funds have grown from an average of $50M to often exceeding $100M. However, he predicts a scaleback in seed fund size in the coming years as return on investment becomes more challenging.
  • Returns & Exits: Cendana’s return strategy has proven successful over time. The initial fund generated a net return of 4.2 times to investors, with 2.2 times of their capital being distributed back to them. This long-term game illustrates that significant company value often takes 7-8 years, or longer, to cultivate.
  • Lack of Exits: Despite a lack of exits in recent years, Cendana has not sold off any positions in the secondary market. However, Kim anticipates an increase in secondary market activity and believes it’s an essential component of venture investment.

As Kim prepares for a trip to Singapore and a host of institutional investors’ summit, the future seems promising and exciting with numerous opportunities for Cendana Capital.

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