VC Fund Models — A European Fund of Funds Investor Perspective
There are VC funds and then there are VC funds: nuances differ greatly per fund but have a large impact on fund performance over time. Given the fact that in VC “the best seeds bear the most fruits” or in VC language “the strong power law return distribution” it is important for VCs, LPs and even founders to understand the nuances between VC fund models that are used to increase the chances of success.
“It is very natural for investors to just focus on the individual deals that they are chasing. What sets apart more experienced teams is a very deliberate and dynamic approach to looking at the portfolio / fund model angle as well” says Michiel Kotting, General Partner at Northzone.
In recent years the development of the European VC ecosystem has been mainly driven by the increasing quality of the ventures, fuelled by the growing experience of (serial) entrepreneurs. These developments together with a strong economic cycle has resulted in a prosperous 10-year period for VCs in which they were able to invest in great companies such as UiPath, Klarna, Hopin, WeFox, Transferwise, Flixbus, Revolut and N26. The experience gained by fund managers during this period resulted in the improvement and sharpening of their investment strategies and fund models.
James Fitzgerald, Founding Partner at Valar Ventures “The science in portfolio construction is in understanding how much concentration is appropriate for a given strategy and target return profile. The art is knowing where to place that concentration. At the early stage, where Valar invests, if you get both of those things right, you can produce legendary returns.”
Developments in fund models
We define three investment models that are used by VCs, as well as the add-ons that finalise the models, together forming the overall investment fund model. The fund model can be used to identify the operational model of a VC and to compare VC funds based on their investment strategy and activity. This may come in handy for VCs that want to learn more about the different fund models, for LPs searching for specific VC funds and for founders looking for the right value-add investor(s) in their upcoming funding round.
We are excited to offer a unique opportunity to join Pacenotes as a Visiting Analyst, where you will collaborate closely with our investment team. As a Visiting Analyst at Pacenotes, you will be more than just an observer—you'll be an integral part of the team. This hands-on role will provide you with exposure to both fund and direct investments, globally, offering the opportunity to engage with live projects and contribute meaningfully to the firm’s investment strategies.
About Us
Pacenotes is a global Venture Capital firm that invests in exceptional founders and venture funds worldwide. Our mission is to deliver strong risk-adjusted returns by leveraging deep industry expertise, robust relationships, and a proven track record in technology investments. Through data-driven analysis and strategic decision-making, we drive growth and create value for our portfolio.
Your Responsibilities
Market Research: Conduct independent research and deep dives into market trends, industry developments, and investment opportunities
Screening & Due Diligence: Assist in the evaluation of potential investments through market, product, customer, competitor, and financial due diligence
Investment Case Development: Help build investment cases, including valuations, exit scenario modeling, and strategic analysis, and prepare documents to support investment decisions
Portfolio Support: Assist the investment team in the funds operations, monitoring and managing existing portfolio companies
Your Profile
University or Bachelor’s degree in Finance, Economics, Business, or a related field
Experience in tech, finance, consulting, investment banking, private equity or venture capital
Strong analytical, quantitative, and financial modelling skills
Tech-savvy and passionate about innovation and emerging technologies
A self-starter with the ability to manage both complex and routine tasks in a fast-paced environment
Excellent written and verbal communication skills
Ability to conduct independent research, synthesize findings, and provide actionable insights
Collaborative team player with high professional and ethical standards
Why Join Pacenotes?
Global Exposure: Gain insight into venture capital investment strategies across diverse global markets, with both fund and direct investments
Skill Development: Sharpen your financial, analytical, and modelling skills through hands-on experience in venture capital
Dynamic Team: Work with a passionate, innovative team that values curiosity, independence, and continuous learning
Impactful Work: Contribute directly to live investment projects and gain exposure to senior-level professionals and entrepreneurs
Location: Amsterdam Area / Flexible / Remote
Position Type: Short-term position 5-6 months with potential for extension based on performance and organizational needs
We are excited to offer a unique opportunity to join Pacenotes as a Visiting Analyst, where you will collaborate closely with our investment team. As a Visiting Analyst at Pacenotes, you will be more than just an observer—you'll be an integral part of the team. This hands-on role will provide you with exposure to both fund and direct investments, globally, offering the opportunity to engage with live projects and contribute meaningfully to the firm’s investment strategies.
About Us
Pacenotes is a global Venture Capital firm that invests in exceptional founders and venture funds worldwide. Our mission is to deliver strong risk-adjusted returns by leveraging deep industry expertise, robust relationships, and a proven track record in technology investments. Through data-driven analysis and strategic decision-making, we drive growth and create value for our portfolio.
Your Responsibilities
Market Research: Conduct independent research and deep dives into market trends, industry developments, and investment opportunities
Screening & Due Diligence: Assist in the evaluation of potential investments through market, product, customer, competitor, and financial due diligence
Investment Case Development: Help build investment cases, including valuations, exit scenario modeling, and strategic analysis, and prepare documents to support investment decisions
Portfolio Support: Assist the investment team in the funds operations, monitoring and managing existing portfolio companies
Your Profile
University or Bachelor’s degree in Finance, Economics, Business, or a related field
Experience in tech, finance, consulting, investment banking, private equity or venture capital
Strong analytical, quantitative, and financial modelling skills
Tech-savvy and passionate about innovation and emerging technologies
A self-starter with the ability to manage both complex and routine tasks in a fast-paced environment
Excellent written and verbal communication skills
Ability to conduct independent research, synthesize findings, and provide actionable insights
Collaborative team player with high professional and ethical standards
Why Join Pacenotes?
Global Exposure: Gain insight into venture capital investment strategies across diverse global markets, with both fund and direct investments
Skill Development: Sharpen your financial, analytical, and modelling skills through hands-on experience in venture capital
Dynamic Team: Work with a passionate, innovative team that values curiosity, independence, and continuous learning
Impactful Work: Contribute directly to live investment projects and gain exposure to senior-level professionals and entrepreneurs
Location: Amsterdam Area / Flexible / Remote
Position Type: Short-term position 5-6 months with potential for extension based on performance and organizational needs