You already
think in
geographies.
The conviction that made you a successful real estate investor — choosing markets, reading ecosystems, committing to a geography — is the same mental model that drives ecosystem-based venture allocation. The asset class is different. The thinking is not.
Reserve a Position →from real estate
The geographic conviction maps directly. But venture capital has a structural difference that real estate investors should understand before allocating: the returns are entirely driven by a small number of outliers.
In real estate, a diversified market still produces relatively distributed returns — most properties in a growing market appreciate. In venture, the top 10% of exits generate 75–90% of all cash returns. Picking the right managers — who have access to those outliers — is the entire game.
This is why a fund-of-funds structure matters so much in venture in a way it doesn't in real estate. By allocating across multiple VC managers, you improve the probability that your capital is in the funds that are in the deals that break through.
from RE
syndications
deserves a structure.