When working with EA founders, I expect EA funds to have a medium-sized advantage:
the EA and rationality communities have shared language which would make communication with founders easier
if founders are aligned, the fund could be much less afraid of companies being outright scams
EA might have tests for competence that are better than industry standard
the fund could guide founders capable of generating lots of direct impact (e.g. Wave) into maximizing profit, maximizing direct impact, or a mix, whereas most VCs are forced to maximize profit
EA has effective pool of billions of dollars, and so an EA fund would be capable of taking on much more risk than all but the largest VC firms
That said I’m not in the VC space, so maybe the effects are smaller than I think.
When working with EA founders, I expect EA funds to have a medium-sized advantage:
the EA and rationality communities have shared language which would make communication with founders easier
if founders are aligned, the fund could be much less afraid of companies being outright scams
EA might have tests for competence that are better than industry standard
the fund could guide founders capable of generating lots of direct impact (e.g. Wave) into maximizing profit, maximizing direct impact, or a mix, whereas most VCs are forced to maximize profit
EA has effective pool of billions of dollars, and so an EA fund would be capable of taking on much more risk than all but the largest VC firms
That said I’m not in the VC space, so maybe the effects are smaller than I think.