Good morning 👋
Most LPs think about "skin in the game" through the simple lens of "how much of fund is made up of the GP commit?" This is generally a good proxy, but it doesn't capture what's really on the line most of the time.
If you have enough to conviction to not pay yourself for months (maybe years) while fundraising, what does that count for?
If you convince family / friends / others to commit with the risk of burning a relationship if things go south, what does that count for?
If you get your professional network to stick their necks out and vouch for you through intros, what does that count for?
If you are risking your reputation (and future earnings) on a strategy, what does that count for?
If you are figuratively burning the boats and putting all of your eggs into the basket that this is going to work out, what does that count for?
Some more thoughts below …
