“In early-stage venture capital investing, being able to co-invest into a fund’s individual portfolio companies is a key advantage. Co-investing tightens up the liquidity cycle significantly by enabling additional investment in the winners that emerge among our portfolio companies,” says Peter Craddock, Managing Director, Shoreline Venture Management LLC.

Shoreline Venture Management LLC is a venture capital firm at the marcus evans Elite Summit 2017, taking place in Switzerland, and the Private Wealth Management Summit Fall 2017, in Las Vegas, Nevada.

Why should investors consider early-stage technology start-ups? 

By investing early, investors can get much larger positions than if they waited until Series B or Series C financing. With our ownership range of 15-30 percent, this makes a big difference on the back end as you get closer to a liquidity event. Our target cash-on-cash multiple for early-stage companies is a minimum of ten times within seven years. Large venture funds competing for access to later rounds of financing cannot generally get that kind of return.

What type of companies do you look for? Where?

While we are based in San Francisco and very active in the Bay Area, we also look at other technology centers in Western North America – from Vancouver down to San Diego and east to Denver. There is a great deal of start-up activity in these markets and valuations are more attractive. By having a Shoreline Venture Partner on the ground in each area, we learn about opportunities early and can act quickly. 

Our focus is on enterprise software and medical technology, and our team of Venture Partners and Advisors has been active in these sectors for decades. They know what types of companies are a good fit for us, and they perform a significant amount of due diligence before even suggesting we look at prospective investments. We also have a network of founders we have been following for years. This is how we get to see things first.

What are the advantages of co-investing with a small fund? 

Small funds are more nimble in the decision-making process and are not slowed down by large bureaucratic structures. In a small fund, opportunities can be seized as they arise and, on the flip side, an investment can be stopped if a company is not doing well. Large funds may hold on to faltering companies, continuing to put money into a venture that is probably not going to make it. Often, the middle manager in a larger fund may not be willing to admit defeat because performance compensation is based on the portfolio remaining intact. Small funds can more quickly focus their resources on the winners.

What risk should investors be aware of? What risk mitigation strategies would you propose?

The potential for the high reward of venture capital investing does come with risk. There is the risk of the portfolio company failing and lack of liquidity is an issue. Portfolio companies are exposed to the same economic cycle risks as all other companies but are more sensitive to them, particularly in the early growth stages when they are completely reliant on new business coming in the door.

Managing the risk takes an experienced team and a good investment structure. First, deal selection is key. The better the quality of the investment, the lower the risk profile. Look at the investment team, their experience and track record. Two, do not overpay. Three is the co-investment piece. That reduces the risk for limited partners as they can individually take bigger positions in portfolio companies that are pretty obviously going to be successful and they can do it in later growth financing rounds. We recommend investors co-invest once the portfolio has matured a bit and the winners have become more obvious.

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Ahead of the marcus evans Elite Summit 2017 and the Private Wealth Management Summit Fall 2017, Peter Craddock discusses what investors need to look for in selecting a venture fund, and the value of an LP co-investment option

How Investors Can Get Value from Venture Investments

Peter Craddock

Managing Director

Shoreline Venture Management LLC

Recent Delegates

At Elite Summits

  • Founder, Denkmann Family Office
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  • Trustee, Heinz Endowments
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At Private Wealth Management Summits

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At the Elite Summit

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At the Private Wealth Management Summit

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  • Chris Walters, Former Managing Director, Western Region, GenSpring Family Offices
  • Scott A. Winget, Senior Managing Director, Wealth Sustainability, Ascent Private Capital Management
  • Julio Gonzalez, Chief Executive Officer and Founder, Gonzalez Family Office 

     and more...

About Shoreline Venture Management LLC

Shoreline Venture Management is a nimble venture capital firm that has been investing in enterprise software and medical technology start-ups since 2001. Based in San-Francisco, we are active in the Bay Area and other western technology centres from San Diego to Vancouver, BC.

Led by our two Co-Founders, Shoreline’s highly experienced team of nine professionals includes an active network of venture partners and advisors who are industry specialists, operational leaders and technologists. Our network is a prized source of deal flow that gives Shoreline first look access to new investment opportunities.

We are focused on enterprise software and medical technology, not including biotechnology. We begin our investment process at the Series Seed or Series A, take sizable positions and can participate throughout all rounds of funding.

Through our LP co-investment fund, we offer investors the ability to participate in parallel with the primary fund on a no-fee/carry basis. Our core LP’s are family offices and this component of our strategy has proven to be highly effective in increasing over-all net returns.


For more information please send an email to press@marcusevanscy.com or visit the event websites below:

Elite Summit 2017

Private Wealth Management Summit Fall 2017

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